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3 years ago

Which of the following statements is correct?

Business

1 answer:

dezoksy [38]3 years ago

5 0

Answer: Option C

Explanation: The cost can be differentiated on the basis of subject matters as accounting cost and economic cost.

The accounting cost do not consider the opportunity cost while calculating the total cost but the economic cost does. As per the economics, total cost is the sum of explicit cost and implicit/ opportunity cost.

Explicit cost refers to the direct payment made to others while the implicit cost refers to the loss of choosing one alternative over other.

Hence from the above we can conclude that the correct option is C .

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Joe Keho and Mike McLain share income on a 6:4 basis. They have capital balances of $90,000 and $70,000, respectively, when Lind

lions [1.4K]

Answer:

Joe’s Capital (existing partner) = $90,000

Mike’s Capital (existing partner) = $70,000

Profit-sharing ratio = 6:4

Admission of Linda (new partner) with bonus to existing partners:

$100,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $100,000 / 25% = $400,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $100,000 = $260,000

Linda’s Capital in new partnership = 25% * $260,000 = $65,000

However, Linda is contributing $100,000

So, bonus accruing to existing partners = $100,000 - $65,000 = $35,000

Bonus to be split in profit sharing ratio

Bonus accruing to Joe = $35,000 * 6/10 = $21,000

Bonus accruing to Mike = $35,000 * 4/10 = $14,000

Joe'sCapital

$21,000

Mike'sCapital

$14,000

Lindia's Capital

$65,000

b. Admission of Linda (new partner) with bonus to the new partner:

$36,000 cash contributed for 25% share

So, implied value of partnership firm after admission = $36,000 / 25% = $144,000

However, actual value of partnership firm after admission will be = $90,000 + $70,000 + $36,000 = $196,000

Linda’s Capital in new partnership = $196,000 * 25% = $49,000

However, contribution by Linda= $36,000

So, bonus accruing to Linda = $49,000 - $36,000 = $13,000

Joe’s share in bonus to Linda = $13,000 * 6/10 = $7,800

Mike’s share = $13,000 * 4/10 = $5,200

Joe'sCapital

$7,800

Mike'sCapital

$5,200

Lindia's Capital

$49,000

6 0

3 years ago

How many points are in the LEED-NC rating system? A. 21 B. 45 C. 69 D. 110

Lerok [7]

B is the answer I hope this helps

7 0

4 years ago

Read 2 more answers

Due to limited production space, Computer Inc needs to adjust its sales mix. Current production is 500 flash drives (contributio

liubo4ka [24]

Answer:

Computer Inc should produce and sell 500 charging cords since their contribution margin is the highest, resulting in a gross profit of $8 per unit x 500 units = $4,000. And produce and sell 650 flash drives with a contribution margin of $7 per unit which results in a gross profit = $7 x 650 units = $4,550.

Explanation:

Companies must focus on producing and selling the products that generate them the largest profit.

3 0

3 years ago

If the quantity supplied responds only slightly to changes in price, thenA. supply is said to be elastic.B. even a large decreas

Murrr4er [49]

Answer:

D. supply is said to be inelastic.

Explanation:

When the change in the quantity supplied of any good is less sensitive due to change in the price, then the supply is known as the inelastic and If the quantity supplied responds only slightly to changes in price, then supply is said to be inelastic.

6 0

3 years ago

The Bank of Key West is not going to have enough reserves at the end of the business day to meet its reserve requirement of 10%.

kipiarov [429]

Answer:

1. 0.35%

2. 1.15%

Explanation:

The federal funds rate is the rate at which a bank can borrow funds from other depository institutions such as other banks and credit unions for overnight without collaterals. It is a very short term interest rate.

Discount rate at which the federal reserve system provides funds to commercial banks at the discount window. The federal reserve can control the money supply by changing the discount rate.

Here, in the given example, the federal reserve rate is 0.35%, as it is the rate at which the bank can borrow from other banks. While the discount rate is 1.15%, as this is the rate at which banks can borrow from the federal reserve.

5 0

3 years ago