I would say A since you are putting a plan into effect then monitoring what happens
Answer:
1. A. Time spent studying & C. Cost of the trip home
2. A. Cost of maintaining the bicycle & D. Time spent on other leisure activities
Explanation:
For each of the following, describe some of the potential opportunity costs
1. Going home for Thanksgiving vacation will have all three opportunity costs because:
A. Time spent studying: The time spent on the thanksgiving vacation could have been spent in school studying
C. Cost of the trip home: Another applicable opportunity costs is the money spent on the trip which could have been saved if the trip is suspended.
2. Riding your bicycle 20 miles every day.
A. Cost of maintaining the bicycle: Riding your bicycle for 20 miles will warrant high maintenance costs because it covers a significant distance daily. If you do not ride the bicycle, you will not incur such costs
D. Time spent on other leisure activities: The time spent on riding the bicycle to cover 20 kilometers could have been spent on other leisure activities which have to be forgone in order to have time for cycling.
Answer:
161 units
Explanation:
Economic order quantity = √[(2 x annual demand x orderign cost) / annual holding cost per unit]
annual demand = 500 units
ordering cost = $1,000
holding cost = $550 x 7% = $38.50
EOQ = √[(2 x 500 x $1,000) / $38.50] = 161.16 units ≈ 161 units
Answer: 3.50 years
Explanation:
The Payback period is a method of checking the viability of a project. It measures how long it will take a project to pay back it's initial investment.
Formula is;
= Year before payback + Cash remaining till payback/ Cash inflow in year of payback
Year 1 Net Cash Inflow
= Cash Inflow - Cash Outflow
= 30,000 - 12,000
= $18,000
Year 2
= 45,000 - 20,000
= $25,000
Year 3
= 60,000 - 25,000
= $35,000
Year 4
= 50,000 - 30,000
= $20,000
Year 1 + 2 + 3
= 18,000 + 25,000 + 35,000
= $78,000
Amount remaining till payback
= Investment - Cash inflow so far
= 88,000 - 78,000
= $10,000
= Year before payback + Cash remaining till payback/ Cash inflow in year of payback
= 3 + 10,000/20,000
= 3.50 years
