Answer:
The opportunity cost is $400000.
Explanation:
The investment amount in shoe factory = $100,000,000
The earning from money market account = $100,000,000 × 1% = $1,000,000
The second option to invest is watch factory and the investment amount is same = $100,000,000
The earning from watch factory = $400,000
The opportunity cost is the cost of the best-forgone alternative. Therefore, if Adidas decides to invest in a shoe factory then the earning of the watch factory is the opportunity cost. So the opportunity cost of Adidas is $400,000
It’s definitely not A in my opinion, i believe it is b
Answer:
- Credit (decrease) cash account (112): $12,207
- Debit (decrease) loan account (341): $12,000
- Debit (increase) interest expenses (635): $207
Explanation:
The interest occurred = $12000*7%/365*90=$207
The note to be paid = $12,000
Total paid out: $12,207
If Uniform Supply use cash to pay off the note then the entries include:
- Credit (decrease) cash (112): $12,207
- Debit (decrease) loan account (341): $12,000
- Debit (increase) interest expenses (635): $207
Answer: 2.0 and 16%
Explanation:
The degree of operating leverage and the expected percent change in income, will be calculated thus:
Operating leverage will be:
= Contribution margin / Net operating income
= 49200 / 24600
= 2
Then, percentage change in income will be:
= %change in sale × operating leverage
= 8% × 2
= 16%
Answer: Self serving bias
Explanation: In simple words, it refers to the attribute of an individual to take the credit of every positive event themselves, whereas in case of negative events such individuals tends to blame external factors.
In the given case, Mark attributes his success as the outcome of his personality and blames his team or other such factors in case of negative results.
Hence from the above we can conclude that the given case illustrate self serving bias.
