All of the following are factors of production EXCEPT: A. capital) B. labor) C. currency) D. land)

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produ

Elan Coil [88]

Answer: Higher; Comparative advantage

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.

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.

Therefore,

United states's Opportunity cost of producing a pair of shoes = $\frac{100}{20}$

= 5 apples have to be foregone for producing a pair of shoes

Canada's Opportunity cost of producing a pair of shoes = $\frac{20}{10}$

= 2 apples have to be foregone for producing a pair of shoes

Hence, Canada has a comparative advantage in producing pairs of shoes because Canada's opportunity cost of producing a pair of shoes is lower than United states opportunity cost.

5 0

3 years ago

Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how man

sveta [45]

Answer:

$240,000

Explanation:

Selling price per pair of shoes $160 x 12,000 ...1,920,000

Cost (to you) per pair of shoes $80 x 12,000 .... $960,000

Sales commission per pair $10 x 12,000.......... $120,000

Salaries ..........................................................................$420,000

Rent................................................................................ $120,000,

Advertising..................................................................... $20,000,

Insurance .........................................................................$16,000,

Miscellaneous fixed costs ..........................................$24,000,

Profit ..............................................................................$240,000

6 0

3 years ago

Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:

Amiraneli [1.4K]

Answer:

Results are below.

Explanation:

First, we need to calculate the activity rate for each activity:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machining= 312,000/80,000= $3.9 per machine hour

Designing costs= 73,600/8,000= $9.2 per design hour

Setup costs= 71,600/500= $143.2 per batch

Now, we can allocate overhead to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product A:

Machining= 3.9*30,000= 117,000

Designing costs= 9.2*3,200= 29,440

Setup costs= 143.2*50= 7,160

Total overhead= $153,600

Product B:

Machining= 3.9*40,000= 156,000

Designing costs= 9.2*1,800= 16,560

Setup costs= 143.2*175= 25,060

Total overhead= $197,620

Product C:

Machining= 3.9*10,000= 39,000

Designing costs= 9.2*3,000= 27,600

Setup costs= 143.2*275= 39,380

Total overhead= $105,980

8 0

2 years ago

Chris Co. is considering replacing an old machine. The old machine was purchased for $100,000 and has a book value of $40,000 an

Natali5045456 [20]

Answer:

The answer is letter A.

Explanation:

No, because the relevant cost of the new machine is $10,000 more than the cost of the old machine.

3 0

3 years ago

Pendant Publishing is considering a new product line that has expected sales of $1,100,000 per year for each of the next 5 years

Katyanochek1 [597]

Answer:

The operating cash flow of year 1 for the company is $368,500

Explanation:

In order to calculate the operating cash flow of year 1 for the company first we need to calculate the Cashflow before tax and depreciation as follows:

Cashflow before tax=Sales-Variable cost-fixed cost

Cashflow before tax=$1,100,000-$450,000-$180,000

Cashflow before tax=$470,000

Depreciation = Original cost - Salvage / fixed Cost

Depreciation= $1,200,000 - $300,000 / 5

= $180,000

Therefore, to calculate the operating cash flow of year 1 for the company we would have to make the following calculation:

Operating Cash Flow=(CFBT×65%)+Depreciation×35%

Operating Cash Flow=($470,000×65%)+($180,000×35%)

Operating Cash Flow=$368,500

The operating cash flow of year 1 for the company is $368,500

5 0

3 years ago