“Wouldn’t it be great if we get food delivered” is an example of coming up with a business idea based on what

The core CPI looks at the price changes of a market basket without Select one: a. luxury goods b. taxes c. food and energy d. im

Xelga [282]

Answer:

The correct answer is the option C: food and energy.

Explanation:

On the one hand, the concept known as "Consumer Price Index" or CPI is refered to the measure that is basically used in economics in order to obtain the variation of prices in general that happens in a certain period of time, so that means that it focus in calculating the inflation of an economy by examinating the weighted average of prices of a basket of predetermined goods.

On the other hand, the "Core CPI" calculates the inflation in the costs of goods and services of a predetermined basket by does not include the ones from the food an energy sectors.

4 0

3 years ago

Exercise 1-16 Cost Classifications for Decision Making [LO1-5] Warner Corporation purchased a machine 7 years ago for $383,000 w

elena-s [515]

Answer:

Missing word "2. What is the total sunk cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 3. What is the total opportunity cost regarding the decision to invest in the model 200 machine?"

1. Differential cost of buying model 200 machine = Cost of model 200 machine - Cost of model 300 machine

= $342,000 - $373,650

= -$31,650

We'll have a savings of $31,650 if model 200 is purchased rather than model 300

2. $383,000 (The Cost of existing machine). Note: $383,000 is a sunk cost since it has already been incurred.

3. Opportunity cost is the total return of the project if the money was invested elsewhere. The Opportunity cost of investing in model 200 machine is $445,600 (Returns from the alternate project)

6 0

3 years ago

Exhibit 15.1 Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm'

FrozenT [24]

Answer:

difference between ROEs = 10.83% (restricted) - 9% (relaxed) = 1.83%

Explanation:

total annual sales = $4,400,000

EBIT = $150,000

net income = $150,000 x (1 - 40%) = $90,000

restricted policy:

asset turnover = 2.5

sales = $3,740,000

EBIT = $135,000

net income = $81,000

assets = $3,740,000 / 2.5 = $1,496,000

equity = $1,496,000 x 50% = $748,000

ROE = $81,000 / $748,000 = 10.83%

relaxed policy:

asset turnover = 2.2

sales = $4,400,000

EBIT = $150,000

net income = $90,000

assets = $4,400,000 / 2.2 = $2,000,000

equity = $2,000,000 x 50% = $1,000,000

ROE = $90,000 / $1,000,000 = 9%

difference between ROEs = 10.83% - 9% = 1.83%

4 0

4 years ago

You purchased 100 shares of stock for $5 per share. After holding the stock for 8 years and not receiving any dividends, you sel

REY [17]

Holding period = 8 years
ROI / year = (42 - 5)/8 = 4,62 $ a year
(not sure)

7 0

3 years ago

Which of the following describes an externality and which does not? Explain the difference. a. A policy of restricted coffee ex

luda_lava [24]

Answer: The correct answer is "A. Choice (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market effects, which are not externalities. ".

Explanation: Choice (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market effects, which are not externalities.

An externality is a situation in which the costs or benefits of producing or consuming a good or service are not reflected in its market price despite having an external impact.

In case A, the situation is reflected in the market price, while in case B, the external situation, despite having an impact, does not affect the market price.

8 0

3 years ago