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babunello [35]
3 years ago
12

More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They rec

ently purchased parts for $100,000 and they have a buyer willing to pay $120,000. The company can also incorporate these parts into a new product at a cost of $75,000 and sell the new product for $190,000. What should More Parts Liquidators do?
Business
1 answer:
Alla [95]3 years ago
6 0

Answer:

Sell the parts without any processing because the profit is higher ($20,000 vs $15,000)

Explanation:

they have two options:

  • option A, sell the parts as they are and make $20,000 in profits (= $120,000 - $100,000).
  • option B, further process the parts by spending $75,000 and sell them for $190,000, and make only $15,000 in profits (= $190,000 - $100,000 - $75,000).

The best option is A, to sell the parts without any processing because the profit is higher and they do not have to spend more money.

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If the economy experiences a recession with a current spending gap $1,000 below full-employment output, and the marginal propens
gtnhenbr [62]

Answer:

Change in Investment  (Government Spending) = $200

Explanation:

Multiplier = k =∆Y/∆I = 1/(1-MPC)

Needed ∆Y = $1000  ;  MPC = 0.8

1000/ ∆I = 1 / (1-0.8)

1000/∆I  = 1 / 0.2

1000/∆I  = 5

∆I  = 1000/5

∆I = 200

5 0
3 years ago
What is the first account number used in the liabilities division? A. 20 C. 2 B. 21 D. 02
zepelin [54]

Answer:

the answer is A. 20

Explanation:

7 0
3 years ago
You are considering a stock investment in one of two firms (Lots of Debt, Inc. and Lots of Equity, Inc.), both of which operate
Luden [163]

Answer:

Debt Ratio = Total Debt Total/ Assets

Equity Multiplier = Assets/Equity

<h2>Lots of Debt</h2>

Debt Ratio

= 32.5/34.25

= 0.95

Equity Multiplier

= 34.25/2

= 17.13

<h2>Lots of Equity </h2>

Debt Ratio

= 2/34.25

= 0.06

Equity Multiplier

= 34.25/32.25

= 1.06

6 0
3 years ago
Why is it in our self-interest to economize or pick and choose goods and services that maximize our satisfaction? Because of our
Novosadov [1.4K]

Answer:

The correct answer is the first option: Because of our limited incomes conflicting with our insatiable wants for goods and services.

Explanation:

To begin with, in the microeconomics theory, the individuals agents that are the consumers are all the time trying to satisfy their needs due to the fact that there is an unlimited desire for goods and services that keep continue to grow all the time and that conflicts with the fact that most of the people have only few and limited resources to get the necessary income to obtain all of those goods and services. That is why that the consumers always look for the way to maximize their satisfaction according to the available income that they have with the purpose to spend it on those goods and services.

3 0
3 years ago
Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $74,000 at age 65, the firm will pa
photoshop1234 [79]

Answer: 0.10%

Explanation:

The following can be gotten from the question:

n = 15 years

We change it to months. Thus will be:

= 15 × 12

= 180

Present value of an annuity :

= A × {1- (1 +r ) -n ]/r}

74000 = 450 × [ 1- (1 +r) - 180]/r

r= 0.10%

Therefore, the monthly interest rate is 0.10%.

8 0
3 years ago
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