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rjkz [21]
3 years ago
10

Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has

yearly maintenance costs of exist29,000, yearly operating costs of exist22,000, and yearly revenues of exist97,000. Two years ago, the firm spent exist6,000 upgrading the equipment used to make this product, and it expects to spend exist5,000 on additional upgrades three years from now. In this scenario, Oliver:_____.
a) has sunk costs of exist5,000.
b) has sunk costs of exist6,000.
c) has sunk costs of exist51,000.
d) does not have any sunk costs.
Business
1 answer:
kifflom [539]3 years ago
6 0

Answer:

b) has sunk costs of exist6,000.

Explanation:

The cost which already been incurred and does not effect the decision being made. This cost is prospective cost. It can be avoided in decision making process.

Sunk Cost

Upgradation of Equipment = $6,000

Other cost are the routine costs which incur every year and future cost which is expected to be incur.

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vSelected financial data for The Portland Porcelain Works Coffee Mug Division is as​ follows: Sales $ 2 comma 000 comma 000 Oper
ioda

Answer:

Capital turnover = 2.5 times

Explanation:

given data

Sales =  $2,000,000

Operating income = $400,000

Total assets = $800,000

Current liabilities = $120,000

Target rate of return = 13​%

Weighted average cost of capital = 6​%

to find out

Portland Porcelain Works Coffee Mug Division capital​ turnover

solution

we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets

so

Capital turnover = \frac{sales}{total\ assets}     ......................1

put here value

Capital turnover = \frac{2,000,000}{800,000}

Capital turnover = 2.5 times

5 0
3 years ago
For many years, college costs (including tuition, fees, and room and board) increases have been higher than the inflation rate,
arsen [322]

Answer: $23,888

Explanation:

The cost today for a freshman at a public university is $19,500.

Inflation is at 7% a year and the period is 3 years from now. It is best to use a future value formula:

= Fees * ( 1 + rate) ^ number of years

= 19,500 * ( 1 + 7%)³

= 19,500 * 1.225043

= $23,888

3 0
3 years ago
To enhance your ability to assess and manage risk in specific driving situations, you should:_____.
kaheart [24]

To enhance our ability to assess and manage risk in specific driving situations we should assume that a dangerous situation may occur.

Given an incomplete sentence related to the ability to manage and assess the risk in specific driving situations.

We are required to fill the blank given in the sentence so that the sentence will give adequate meaning.

The words which are to be filled in the sentence are "assume that a dangerous situation may occur",

While driving there is a risk of accident so when someone is assessing the risk of specific driving then he has to take in consideration that any dangerous situation can occur. We know that the thinking that the accident may occur is negative but an analysts has to think multidimensional.

Hence to enhance our ability to assess and manage risk in specific driving situations we should assume that a dangerous situation may occur.

Learn more about risk at brainly.com/question/24129294

#SPJ4

7 0
2 years ago
Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inve
Radda [10]

Answer:

The total cost of goods sold =  $37,500

Explanation:

Given:

Beginning inventory = 10,000 units at $3

Purchase inventory = 5,000 units at $4

Purchase inventory = 5,000 units at $5

Sale inventory = 10,000 units at $10

Total inventory units = [10,000 + 5,000 +5,000]

Total inventory units = [20,000]

Total Cost of inventory units = [(10,000×$3) + (5,000×$4) + (5,000×$5)]

Total Cost of inventory units = [$30,000 + $20,000 + $25,000]

Total Cost of inventory units = [$75,000]

Average price per unit = Total Cost of inventory units / Total inventory units

Average price per unit = $75,000 / 20,000

Average price per unit = $3.75

The total cost of goods sold = 10,000 units sold × $3.75

The total cost of goods sold =  $37,500

3 0
3 years ago
you are considering investing in general motors (GM). which of the following is an example of diversifable risk? a. risk resulti
Maru [420]

Answer:

d. risk resulting from an expected automobile industry shock g

Explanation:

Non systemic risk are risks that can be diversified away. they are also called company specific risk or industry specific risk . Examples of this type of risk is a manager engaging in fraudulent activities and risk resulting from an expected automobile industry shock

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

7 0
3 years ago
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