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timofeeve [1]
2 years ago
9

Sam has two options this weekend. He could work at his job and earn $9/hour for three hours, or he could go to a show at the the

ater for that three hours. A ticket to the theater costs $30. What is the opportunity cost of going to the theater?
Business
1 answer:
taurus [48]2 years ago
4 0

Answer: $57

Explanation:

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Opportunity cost of going to the theater:

Earning at work = $9 per hour × 3 hours

                          = $27

Theater ticket cost = $30

Therefore, total opportunity cost of going to the theater is as follows;

= Earning at work + Theater ticket cost

= $27 + $30

= $57

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Kingbird, Inc. has the following information available for accruals for the year ended December 31, 2019. The company adjusts it
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Answer:

a-Dec-31. Dr Utility expense   485

                    Cr   Utility bills payable  485

b-Jan-11.  Dr Utility bills payable  485

                        Cr Cash                   485

c-Dec-31. Dr Salary expense  3990

                Cr  Salary payable                3990

d-Dec-31. Dr bank 51600

                 Cr  Loan payable   51600

e-Dec-31 Dr Interest expense  215

                    Cr interest payable     215

f-Dec-31 Dr Account receivable  340

                  Cr   Service revenue  account    340

g-Dec-31. Dr Cash  6840

                 Cr Advance Rent    6840

Explanation:

a-Utility expense incurred for the m/o Dec will be paid in Jan.

c- Salaries of 3990 will be paid on Jan of 4 days.

e-Interest expense for the m/o Dec will be (51600*5%=2580/12=215.

f-The service fee is receivable which will be paid on Jan.

g- Advance rent is received from client.

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