Answer:
The correct answer is: the ability to produce a good or service at a lower opportunity cost than another.
Explanation:
Comparative advantage implies the ability to produce a good at lower opportunity cost. Opportunity cost is the cost of giving up the alternative.
A nation is considered to be enjoying a comparative advantage in the production of a good if it can produce the good at a relatively lower opportunity cost than other nations.
A nation is said to be specializing in the production of a commodity if it has a comparative advantage in production.
Answer:
Degree of operating leverage= 1.4
Explanation:
Giving the following information:
Sales $6,160,000
Variable costs (4,620,000)
Contribution margin $1,540,000
Fixed costs (440,000)
Operating income $1,100,000
<u>To calculate the degree of operating leverage, we need to use the following formula:</u>
degree of operating leverage= Total contribution margin / operating income
degree of operating leverage= 1,540,000 / 1,100,000
degree of operating leverage= 1.4
Answer:
The correct answer is older; lower; higher.
Explanation:
The FIFO method assumes that the next item to be sold is the one that has more time to be stored. In an economy with rising prices (during inflation), it is common for companies to use during their beginnings to increase the value of their assets. As the oldest and cheapest goods are sold, the newest and most expensive goods are kept as company assets. The cost of sale will be the oldest of the existing acquisition prices, and the final stocks will coincide with the last entries in the company's warehouse. Having the most expensive inventory and the lowest cost of products sold allows the company to show better economic performance. However, as they grow, some companies prefer to change their inventory accounting system to LIFO to reduce the payment of taxes. FIFO is an acronym that means "first to enter, first to leave." With this inventory valuation method, the company counts the inventory value received first when sales are made. One of the most common reasons that a company decides to use FIFO is because it is a more natural way in a straight line, since you count your first inventory as in the first items sold. This makes it especially useful when tracking inventory items is simple.
Answer:
c.$20,140
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Initial investment in the machine is the cash outflow and the net cash flows are the values that are used for Net present value.
Net Present Value = Present value of net cash flows - Initial Investment
Net Present Value = ( 95,000 x 4.212 ) - $380,000
Net Present Value = $400,140 - $380,000
Net Present Value = $20,140
Answer:
b. The production decisions of a pharmaceutical firm
Explanation:
The production decisions of a pharmaceutical firm is an aspect of microeconomics.
Macroeconomics is a branch of economics that studies the economy
Microeconomics is a branch of economics that studies individuals, firms and households.
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