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Taya2010 [7]
3 years ago
7

Charles has decided to open a​ lawn-mowing company. To do​ so, he purchases mowing equipment for ​$​, buys gasoline ​($ in gas i

s required to mow each​ yard), and pays a helper ​$ per yard. Prior to opening the lawn​ company, Charles earned ​$ as a lifeguard at the neighborhood swimming pool. Assume the money he used to purchase the mowing equipment could otherwise have earned percent per year in the bank and that the mowing equipment depreciates at percent per year. Charles plans to mow yards per year. What is​ Charles's implicit costLOADING... of​ production? ​Charles's implicit cost of production is ​$ nothing per year. ​(Enter your response as an​ integer.)
Business
1 answer:
Masja [62]3 years ago
6 0

Answer: $8,600

Explanation:

Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.

The implicit cost here is therefore:

The $8,000 that Charles could have been making as a lifeguard.

The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.

The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.

= 8,000 + (2% * 5,000) + (10% * 5,000)

= 8,000 + 100 + 500

= $8,600

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JK Company can sell all of the plush and supreme products it can produce, but it has limited production capacity. It can produce
shepuryov [24]

Answer:

$3,418,800

Explanation:

Contribution margin per hour:

Plush: 4 units per hour x $231 = $924

Supreme: 2 units per hour x $317 = $634

Since contribution margin per hour from Plush is higher than Supreme, we select Plush as the most profitable sales. Hence,

Total contribution = 3,700 hours available x $924 = $3,418,800

Hope this helps!

8 0
3 years ago
Read 2 more answers
Work Breakdown Structures typically include one or more intermediate levels. Which of the following statements correctly describ
nikklg [1K]

Answer:

c. They generally represent items that need to be created in order to produce the final deliverables.

Explanation:

Work Breakdown Structure (WBS) is a tool that the project manager uses to progressively divide deliverables into smaller pieces. It gives framework that can be used as a basis for further planning activities. They are displayed in an indented outline format.

6 0
3 years ago
Nueva Company reported the following pretax data for its first year of operations. Net sales 7,400 Cost of goods available for s
Ludmilka [50]

Answer:

Net Income $574

Explanation:

Calculation of Nueva's net income if it elects FIFO will be :

Net sales$7,400

Less Cost of goods sold ($4,806)

($5,610 − $804)

Gross profit 2,594

Operating expenses (1,638)

Income before taxes 956

(2,594-1,638)

Income tax 382.4

(40%×956)

Net income $574

(956-382.4)

Therefore the Nueva's net income if it elects FIFO would be $574

8 0
3 years ago
The following information is available for the pension plan of Concord Company for the year 2020.
anzhelika [568]

Answer:

$93,900

Explanation:

Computation for pension expense for the year 2020.

PENSION EXPENSE

Service cost $54,700

Interest cost $45,200

($452,000 * 0.10)

Less Actual return ($13,800)

Amortization of PSC $7,800

Pension expense $93,900

Therefore the pension expense for the year 2020 is $93,900

4 0
2 years ago
After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who wa
sukhopar [10]

Answer:

Total cost formula= 3,510 + 4.911*x

x= Number of instruments

Explanation:

<u>To calculate the variable and fixed costs, we will use the high-low method:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (10,012 - 6,574) / (1,324 - 624)

Variable cost per unit= $4.911

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 10,012 - (4.911*1,324)

Fixed costs= $3,510

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 6,574 - (4.911*624)

Fixed costs= $3,510

Total cost formula= 3,510 + 4.911*x

x= Number of instruments

For 1,192 instruments:

Total cos= 3,510 + 4.911*1,192

Total cost= $9,363.9

4 0
2 years ago
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