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maks197457 [2]
3 years ago
15

Hotco oil burners, designed to be used in asphalt plants, are so efficient that Hotco will sell one to the Clifton Asphalt plant

for no payment other than the cost savings between the total amount the asphalt plant actually paid for oil using its former burner during the last two years and the total amount it will pay for oil using the Hotco burner during the next two years. On installation, the plant will make an estimated payment, which will be adjusted after two years to equal the actual cost savings.
Which of the following, if it occurred, would constitute a disadvantage for Hotco of the plan described above?
A) Another manufacturer’s introduction to the market of a similarly efficient burner
B) The Clifton Asphalt plant’s need for more than one new burner
C) Very poor efficiency in the Clifton Asphalt plant’s old burner
D) A decrease in the demand for asphalt
E) A steady increase in the price of oil beginning soon after the new burner is installed
Business
1 answer:
dlinn [17]3 years ago
5 0

Answer:

Hotco

If it occurred, this would constitute a disadvantage for Hotco of the plan described above:

E) A steady increase in the price of oil beginning soon after the new burner is installed.

Explanation:

A steady oil price increase commencing soon after the new burner is installed will obliterate the actual cost savings from which Clifton Asphalt would be paying Hotco for the oil burners.

This is buttressed by the fact of the payment terms that totally depends on the cost savings.

Even the adjustment after two years may not benefit Hotco if the steady increase in the price of oil persists.

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3 years ago
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what is the total amount of final goods and service produced in a country that people, businesses, governments, and foreigners p
Bas_tet [7]

The total amount of final goods and service produced in a country that people, businesses, governments, and foreigners plan to buy is Gross domestic product (GDP).

<h3>What is Gross domestic product (GDP)?</h3>
  • GDP is a metric for a country's economic output. GDP is a measure of the overall economic output of new products and services in a particular year.
  • The circular flow diagram can be used to illustrate GDP as a flow of income moving in one direction and expenditures on resources, products, and services moving in the opposite way.
  • According to this model, households purchase goods and services from businesses, and vice versa.
  • The circular flow figure shows how the national income calculation methods of using income and expenditures are equivalent.
  • Money (revenue from the sale of the commodities, services, and resources) travels counterclockwise in this picture while goods, services, and resources go clockwise.

Learn more about the Gross domestic product (GDP) with the help of the given link:

brainly.com/question/15682765

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5 0
1 year ago
During 2017 the inflation rate increased slightly but remained in the​ "comfort zone" and the unemployment rate was low. Why mig
goblinko [34]

Answer:B It thought that unemployment was a greater problem than the rising inflation rate

Explanation:

Inflation is the continuous rise in price of goods and services which is as a result of large volume of money in circulation used for the few available goods and services.

Unemployment is a situation where all that are willing and capable of being employed are unable to get employment.

In the above scenario lowering Interest rates will increase the volume of money in circulation which will invariably increase inflation and we equally increase level of investment as the cost of fund will be cheaper thereby lowering unemployment.

This action means unemployment is of greater problem than rising inflation.

It does not mean inflation is of more concern than unemployment otherwise it will have increase the interest rate, it will make loanable fund demanded to exceed supply and the quantity of money in supply will increase.

7 0
3 years ago
Using the following information, what is the amount of gross profit?​
SIZIF [17.4K]

Answer:

Gross profit= $54,700

Explanation:

Giving the following information:

Purchases $37,000

Merchandise inventory, September 1 6,100

Merchandise inventory, September 30 6,800

Sales 91,000

<u>First, we need to calculate the cost of goods sold:</u>

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 6,100 + 37,000 - 6,800

COGS= $36,300

<u>Now, the gross profit:</u>

Gross profit= sales - COGS

Gross profit= 91,000 - 36,300

Gross profit= $54,700

3 0
3 years ago
5. ________ is a short-term security, or note, containing a borrower's promise to pay O A trade draft O Equity financing O Comme
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Answer:

Commerical paper

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Commerical paper is a short-term security, or note, containing a borrower's promise to pay.

There was a previous question like that, so i remember the answer.

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2 years ago
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