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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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Arthur Meiners is the production manager of​ Wheel-Rite, a small producer of metal parts.​ Wheel-Rite supplies​ Cal-Tex, a large
lidiya [134]

Answer:

The optimum production quantity is 72 wheel bearings per batch.

Explanation:

Wheel Rite can produce 480 wheel bearings per day.

Setup cost are $39 per batch.

Holding costs are $0.70 per unit per year.

The optimum batch size can be calculated as the one that minimizes the cost. This can be calculated with the Economic Order Quantity formula:

Q=\sqrt{\frac{2DS}{H} }

In this case, the units are:

D: daily demand (52 u.)

S: Setup cost per order ($39)

H: holding cost per unit per year ($0.70)

Then, we have:

Q=\sqrt{\frac{2DS}{H} }=\sqrt{\frac{2*52*39}{0.7} }=\sqrt{5,794}=76.12\approx 72

The optimum production quantity is 72 per batch.

5 0
3 years ago
Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 o
agasfer [191]

Answer:

a) Jenna's tax basis = $45,000 + ($13,000 - $10,000) = $48,000

loss allocation = $65,000

loss limited by her tax basis = $65,000 - $48,000 = $17,000

b)  Jenna's at risk loss = $48,000 - $13,000 = $35,000

c) Jenna's loss limited by passive activity = $35,000 - $4,000 = $31,000

4 0
3 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
Ronch [10]
Last year mike bought 100 shares of Dallas corporation common stock for = $53 per share
he received this year dividends of = $1.45 per share
stock is currently selling for = $60 per share
rate of return = ?
capital yield %= (60 - 53 / 53) x 100 = 0.132  x 100 = 13.2%
dividend yield % = (1.45 / 53) x 100 = 0.0273 x 100 = 2.73%
Total yield or rate of return will be = 13.2 + 2.73 = 15.94 %
7 0
3 years ago
Maria Alverez has received a paycheck for $250, which she wishes to cash at her bank. She will need to use a blank endorsement o
nlexa [21]

She would need an Address an   Social Security number (or ITIN)  with a

Valid ID

8 0
3 years ago
Which of the following charitable contributions is not tax deductible? a. Time donated to a qualified veterans’ organization. b.
igor_vitrenko [27]

Answer:

Time donated to a qualified veterans organization

Explanation:

The reason is that the company can only only deduct the products or services delivered which had cost the organization. The companies are not allowed to deduct the cost of time delivered however if the employee is specially paid to offer the services to qualified charitable institution then the charity would be tax deductable.

6 0
3 years ago
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