Answer:
Freecia has a comparative advantage in producing memory chips
Explanation:
Comparative advantage occurs when a company has an advantage over the other through the production of certain goods at a cheaper rate.
Looking at the given example , let us assume that the cost of producing a bushel of rice is $10 and memory chips is $10
Warmia produces two bushels of rice at $70 and a memory chip at $70(ratio 2:1) 1/3*70= 23.3
Freecia produces five bushels of rice at $70 and two memory chips at $7
(Ratio 5:2). 2/7*70=14
We can see that the cost of producing memory chips is cheaper fo Freecia
Answer:
$27,692.31
Explanation:
Principle amount = $2.34 million = $2,340,000
Time, n = 6 years = 72 months
Rate of interest = 5.33%
Monthly rate of interest, r = 5.33% ÷ 12 = 0.44% = 0.0044
Compounded monthly
FV of Annuity = ( Monthly deposits ) × { [ ( 1 + r )ⁿ - 1 ] ÷ r }
or
$ 2,340,000 = ( Monthly deposits ) × { [ ( 1 + 0.0044 )⁷² - 1 ] ÷ 0.0044 }
or
$2,340,000 = ( Monthly deposits ) × { [ 1.3718 - 1 ] ÷ 0.0044 }
or
$2,340,000 = ( Monthly deposits ) × [ 0.3718 ÷ 0.0044 ]
or
$2,340,000 = ( Monthly deposits ) × 84.5
or
Monthly deposits = $27,692.31
Answer:
This equals $12,256.70 (230 x $50.70 + 230 x $2.59)
Explanation:
The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.
This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.
Answer:
$40.875
Explanation:
Given that,
Selling Expenses = $ 9,600
Merchandise Inventory on December 31 = 33,000
Merchandise Inventory on January 1 = 47,000
Purchases of merchandise = 83,500
Rent for store = 12,100
Sales commissions = 7,300
Sales revenue = 168,500
Cost of goods sold:
= Beginning merchandise inventory + Merchandise purchase - Ending merchandise inventory
= $47,000 + $83,500 + $33,000
= $163,500
If Crabapples sold 4,000 boxes of dry fruit during the year, then the cost per box of dry fruits is:
= Cost of goods sold ÷ Number of boxes sold
= $163,500 ÷ 4,000
= $40.875
Answer:
The correct answer is d. $0.31 per client-visit; $24,766 per month.
Explanation:
The costs can be of fixed nature or a variable nature or of a mixed nature. A mixed costs contains a component of both fixed and variable costs. The high-low method is used to calculate the variable component per unit of a mixed cost. Th formula for high low method is:
Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity level - Lowest activity level)
the highest activity is in June, 13400 client visits and the highest cost is also of this activity. The lowest activity is in August, 11207 client visits and the lowest cost belongs to this activity.
Variable cost per unit = (28920 - 28235) / (13400 - 11207)
Variable cost per unit = $0.31 rounded off to two decimal places
The fixed cost = Total cost - total variable cost
Taking 13400 activity,
The fixed component is = 28920 - (0.31 * 13400) = $24766 per month
Thus, the correct answer is d.
