Answer:
Explanation:
United States is producing 200 tons of hamburgers and 60 tons of tacos.
United States' opportunity cost for producing 1 ton of hamburgers
= 
= 0.3
United States' opportunity cost for producing 60 tons of tacos.
= 
= 3.33
So we see that US has a lower opportunity cost in producing hamburgers, so it has a comparative advantage in producing hamburgers.
Mexico is producing 40 tons of hamburgers and 50 tons of tacos.
Mexico's opportunity cost of producing a ton of hamburgers
= 
= 1.25
Mexico's opportunity cost of producing a ton of tacos
= 
= 0.8
So we see that Mexico has a lower opportunity cost in producing tacos, so it has a comparative advantage in making tacos.
Since US specializes in making hamburgers, it will produce 200 tons of hamburgers and 0 tons of tacos.
Mexico specializes in making tacos, it will produce 50 tons of tacos and 0 tons of hamburgers.
Answer:
Interest groups are formed to promote the interests or concerns of their members. They are primarily concerned with influencing public policy. Because a key function is to exert pressure on political decision-makers, interest groups are sometimes referred to as 'pressure' or 'lobby' groups.
Answer:
If volume reaches 500 units, net income will be: $715
Explanation:
When volume of sales was at 400 units:
Selling price per unit = Sales Revenue/400 = $1,600/400 = $4
Variable Cost per unit = Variable Cost/400 = $700/400 = $1.75
If volume reaches 500 units:
Total Sales Revenue = $4 x 500 = $2,000
Variable Cost = $1.75 x 500 = $875
Fixed Cost will not change = $410
Net income = Total Sales Revenue - Variable Cost - Fixed Cost = $2,000 - $875 - $410 = $715
Answer:
The journal entry is as follows:
Cash A/c Dr. $18,000
Equipment (Fair value) A/c Dr. $9,000
To N's capital $27,000
(To record the investment bought by Nichols)
Workings:
Cash contributed by Nichols = $18,000
Equipment's Book value = $6,300
Fair value of equipment = $9000
Nichols capital = $18,000 + $9,000
= $27,000
Answer:
Allocated MOH= $252,000
Explanation:
Giving the following information:
Estimated overhead= 240,000
Estimated machine hours= 300,000
Actual machine hours for the year were 315000 hours.
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 240,000/300,000= $0.8 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.8*315,000= $252,000
