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max2010maxim [7]
3 years ago
8

Use the following scenario to answer the next ten questions: Natasha can produce either 5,000 pounds of cheese or 20 houses per

year. Jameson can produce either 5,000 pounds of cheese or 10 houses per year. Jameson’s opportunity cost of producing one pound of cheese is ________ house(s).
Business
2 answers:
andrew11 [14]3 years ago
4 0

Answer:

Jameson’s opportunity cost of producing one pound of cheese is 0,002 house(s).

Explanation:

Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. Resources are limited, therefore the decision to make a quantity of product A limits the amount of producing product B.

In this exercise, Jameson has the resources to produce 5000 pounds of cheese or 10 houses per year or a combination of both.

To calculate the opportunity cost you need to determine how much of a house is 1 pound of cheese.

Opportunity cost= 10house/5000pounds= 0,002

<u>So to produce 1 pound of cheese you need 0,002 of a house.</u>

puteri [66]3 years ago
3 0

Answer: 0.002 house

Explanation: Decisions are made you use one thing or material or resource in place of another. In other words, one resource is forgone in place of another. This is usually due to limited resource availability which leads to opportunity costs — The cost of an opportunity forgone (and the loss of the benefits that could be received from that opportunity); the most valuable forgone alternative.

Your sole focus should be on Jameson since he is the only one whose opportunity cost was mentioned.

In producing 5000 pounds of cheese he would be forgoing the 10 houses he could have made and vice versa.

Now, to produce a pound of cheese, the forgone opportunity (house) is given by total houses divided by total pounds of cheese:

10/5000 = 0.002 house.

Therefore, in producing 1 pound of cheese, Jameson has forgone the 0.002 house alternative he could have produced.

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The construction division has a highly seasonal workload, with fewer projects in the winter than in the summer. Also, different
bagirrra123 [75]

Answer:

Hire temporary employees to work on specific projects.

Explanation:

Human resource management is the process by which a business effectively manages its manpower needs to meet its organisational goals at a reduced cost to the business.

It involves the various strategies used to hire employees to meet business needs in a cost-effective way.

The construction division has a highly seasonal workload, with fewer projects in the winter than in the summer. Also, different expertise is needed for different kinds of buildings. So hiring a permanent workforce is counterproductive as they will be paid when there is no work to be done. The best strategy is to hire temporary workers. Also there is need for specialised staff to work on specific projects.

4 0
2 years ago
On december 2017 coolwear had a balance in its prepaid insurance acount of 68,400. During 2018, 106,000 was paid for insurance.
NNADVOKAT [17]

Answer:

$132,400

Explanation:

Calculation for the Insurance expense

Using this formula

Insurance expense= 2017 Ending Balance in prepaid insurance account+ Amount paid for insurance-2018 Ending Balance in prepaid insurance account

Let plug in the formula

Insurance expense=$68,400+$106,000-$42,000

Insurance expense=$132,400

Therefore the Insurance expense recorded 2018 would be $132,400

8 0
3 years ago
The following information is available for Amos Company for the year ended December 31, 2017. Balance of retained earnings, Dece
kvv77 [185]

Answer:

The retained earnings of Amos company for the year ended 31st December 2017 is $1,016,400.00  

Explanation:

In calculating retained earnings for 2017, I began with prior year retained earnings of $866,000,deducted depreciation net of taxes not recorded previously.

After,having adjusted retained earnings for prior year, I added net income for the year 2017 of $216,000

Finally,I deducted dividends paid during 2017 of $25000 to arrive at closing retained earnings for 2017 as shown in the attached.

Download xlsx
8 0
3 years ago
Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by
Simora [160]

Answer: 25%

Explanation:

The annual rate of return is calculated by simply dividing the Annual income by the average investment.

Annual Income

Annual revenues of $133,500

Annual expenses of $76,000

Annual Income = Revenues - Expenses

Annual Income = $57,500

Average Investment

Calculated by dividing the Addition of the beginning and ending (salvage value) Investment figure by 2.

= (449,000+11,000)/2

= $230,000

Annual Rate of return is therefore,

= 57,500/230,000

= 0.25

= 25%

5 0
3 years ago
Matt Enterprises issued $200,000 of ten percent, five-year bonds with interest payable semiannually. Determine the issue price i
Julli [10]

Answer:

$200,000 ; $234,120.81  ; and $185,279.83

Explanation:

For computing the issue price we need to applied the future value which is shown in the attachment below:

a. Given that,  

Future value = $200,000

Rate of interest = 10%  ÷ 2 = 5%

NPER = 5  years  × 2 = 10 years

PMT = $200,000 × 10%   ÷ 2 = $10,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, applying the formula the issued price is $200,000

b. Given that,  

Future value = $200,000

Rate of interest = 6%  ÷ 2 = 3%

NPER = 5  years  × 2 = 10 years

PMT = $200,000 × 10%   ÷ 2 = $10,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, applying the formula the issued price is $234,120.81

c. Given that,  

Future value = $200,000

Rate of interest = 12%  ÷ 2 = 6%

NPER = 5  years  × 2 = 10 years

PMT = $200,000 × 10%   ÷ 2 = $10,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, applying the formula the issued price is $185,279.83

5 0
3 years ago
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