Answer:
$11,175,000
Explanation:
The net sales of Siena Company for the last year shall be determined through following mentioned formula:
Net sales=Gross sales-sales returns and allowances-sales discounts
In the given question:
Gross sales=$11,720,000
Sales returns and allowances=$370,000
Sales discounts=$175,000
Net sales=$11,720,000-$370,000-$175,000=$11,175,000
Answer:
a. Dave has a COMPARATIVE ADVANTAGE in the production of sweaters.
Explanation:
If both Dave and Caroline produce sweaters and socks. If Dave's opportunity cost of producing 1 sweater is 3 socks, and Caroline's opportunity cost of producing 1 sweater is 5 socks, then Dave has a COMPARATIVE ADVANTAGE in the production of sweaters.
Comparative advantage can be defined as an economy's ability to produce goods and/or services at a lesser opportunity cost than other countries.
In the end comparative advantage gives a country the ability to sell those goods and services that he could produce at lower opportunity costs; cheaper to other countries.
This definition adequately describes the position of Dave in relation to caroline, in the given Scenario.
Answer:
1. The wages and utility bills that Darnell pays.
286,000 explicit cost (accounting)
2. The rental income Darnell could receive if he chose to rent out his showroom.
3,000 x 12 months = 36,000 implicit cost (economic)
3. The salary Darnell could earn if he worked as a financial advisor.
20,000 implicit cost (economic)
4. The wholesale cost for the guitars that Darnell pays the manufacturer.
704,000 explicit cost (accounting)
Explanation:
The explicit cost are those which occurs and are represented in the accounting.
While the implicit cost represent the opportunity cost which is the best alternative rejected for taking the current course of action. They are considered for the economic profit
