Answer:
-$20,000
Explanation:
Economic profit takes into account opportunity cost of an activity.
Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives. Opportunity cost is also known as implicit cost.
Because Bobby chose to work at the seafood resutrant, he forgoed the opportunity of working at the county. Thus, his opportunity cost is $30,000.
Also, if he wasn't making use of the restaurant, he could have rented it out. Thus, his opportunity cost of making use of the restaurant is $20,000.
Economic profit = Revenue - (Implicit cost + Explicit cost)
$50,000 - ($20,000 + $30,000 + $20,000) = -$20,000
I hope my answer helps you
Answer:
Intuition.
Explanation:
Simon is acting on intuition in his response to Jorge. Here Simon says that "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years, both successful and not."
This depicts that he had an intuition thought about success of adding snow removal as an extra service. This was purely based on his intuition and previous experience of over 40 years.
Answer:
(a):Annual demand = 10 packages per day*260 days per year = 2600 packages per year.
H = $1 and S = $10.
Thus Order quantity = (2*2600*10/1)^0.5 = 228 packages
(b): Total annual inventory control cost = Q/2*H + D/Q*S
= 228/2*1 + 2600/228*10
= 114 + 114.03
= 228.03
(c): Yes both annual ordering costs and holding costs are equal at $114.
(d): In case of order quantity of 100 packages the cost will be = 100/2*1 + 2600/100*10
= 50 + 260
= 310.
Thus the cost figure of $310 in case of 100 packages is more than the cost of $228.03 when 228 packages are ordered. Hence I will recommend that the office manager use the optimal order quantity instead of 100 packages.
Answer:
They last for a certain period of time
Explanation:
Typically Certificates of Deposit are offered if the set amount is deposited and kept through the stated amount of time. (The length of the CD can be anywhere from 18 months to 3 years [most popular]) When the money is removed short of the stated time period a penalty is taken from the value of the CD.
We do not have enough information to answer this, You would also need to know how often the interest is paid.