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vladimir2022 [97]
3 years ago
5

Farmer Ted sells winter wheat in a perfectly competitive market. The market price for a bushel of winter wheat is $9. Ted has tw

o hundred and seventy bushels of wheat to sell. If his total variable cost is $2,000 and his total fixed cost is $500, then Ted ________
Business
1 answer:
DochEvi [55]3 years ago
6 0

Answer:

Farmer Ted will receive $9 x 270 = $2,430

This amount does not cover all of Ted's costs = $2,000 + $500 = $2,500, but it helps Ted to minimize his losses.

In a perfectly competitive market, a supplier cannot set the price, they are all price takers. But suppliers will keep selling their products as long as the price exceeds variable costs. in this case variable costs = $2,000, therefore $2,430 exceeds them.

Ted will not make a profit, but he will minimize his losses because the other option of not selling anything will result in a net loss of $500, while selling at the current price results in a net loss of $70.

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The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of
kirill [66]

Answer:

The present value index is 0.91 which is less than 1. So, the investment should not be accepted.

Explanation:

Present Value Index : It shows the ratio between the sum of present value of all years cash inflows after applying the discount rate and initial investment.

In mathematically,

Present value index = Sum of present value of all years cash flows with discount rate ÷ Initial Investment

where,

Present value = Net cash flow × Discount rate

So,

Year 1 = $180,000 × 0.909 = $163,620

Year 2 = $120,000 × 0.826 = $99,120

Year 3 = $100,000 × 0.751 = $75,100

Year 4 = $90,000 × 0.683 = $61,470

Year 5 = $90,000 × 0.621 = $55,890

Now, Sum all the yearly cash inflows which equals to

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the present value index = $455,200 ÷ $500,000 = 0.91

Hence, the present value index is 0.91 which is less than 1. So, the investment should not be accepted.

5 0
3 years ago
Suppose the price of a pound of flax seed in west virginia is currently $1.00. the law of one price suggests that because the pr
Reptile [31]

Answer:

It will be between $1.00 and $ 1,20

Explanation:

Solution

Given:

From the given question, the price of a flax seed in west Virginia is presently at $1.00

From the law of one price states that since the price of a pound of flax seed is $1.20 in Kentucky,

Then,

The price of a flax seed pound will be between 1.20 and 1.00

Therefore, the price of the flax seed in Kentucky as compared to that of west Virginia will be placed in between  prices of $1.20 and $1.00 after the supply by sellers in both market has been adjusted or raised.

6 0
3 years ago
Coronado Inc. had beginning inventory of $12700 at cost and $20900 at retail. Net purchases were $113930 at cost and $158500 at
aalyn [17]

Answer:

<u><em>Ending Inventory:</em></u> <em>21,267.70</em>

Explanation:

                cost   retail  

beginning        12,700    20,900

purchases   113,930   158,500

markups                9,600  

markdowns               (7,400)

total                 126,630    181,600  

inventory to retail ratio: 126,630 / 181,600 =  0.6973

sales revenues   151,100  

COGS: 151,100 x 0.6973 =  105,362.30

<u><em>Ending Inventory:</em></u> 126,630 - 105,362.30 = <em>21,267.70</em>

3 0
3 years ago
Have some points anyone i dont care :)
VARVARA [1.3K]

Answer:

Hey

Explanation:

Thanks so much.............

4 0
2 years ago
Read 2 more answers
A document format is : ap3x
AlladinOne [14]

Answer:is D

Explanation:

The shape,size,design,and arrangement of its physical elements

5 0
2 years ago
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