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Misha Larkins [42]

3 years ago

7

A company purchases land and a building for $300,000. The appraisal attributes a fair market value (FMV) to the land of $180,000

and to the building of $220,000. As a result, the building’s cost will be booked at:____________

1 answer:

ser-zykov [4K]3 years ago

5 0

$700,000 I hope that helps

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What components does a business exclude from<br> Operating surplus

raketka [301]

A business excludes money paid as salaries or wages to employees from operating surplus.

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3 years ago

Juanita makes $30 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $3

Phoenix [80]

Answer:

Juanita should purchase the suit at the store across town because the total economic cost will be lowest.

Explanation:

three options:

local store 15 minutes away and a price of $114
across town 30 minutes away and a price of $86
neighboring city 1 hour away and a price of $60

Juanita makes $30 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:

total economic cost:

local store = $114 + [1/4 hours x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $144
across town = $86 + [1/2 hours x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $131
neighboring city = $60 + [1 hour x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $135

Juanita should purchase the skirt at the store across town because the total economic cost will be lowest ($131)

Opportunity costs are the benefits lost or extra costs incurred for choosing one activity or investment over another alternative. Economic costs include both accounting costs and opportunity costs.

5 0

3 years ago

Your supermarket is trying to determine how many meatloaf dinners should be produced on Monday. The Monday demand for meatloaf d

Alecsey [184]

Answer:

The recommended production quantity is that which maximizes profit.

<em>Quantity 130</em>

<em />

Explanation:

Quantity to produce is the problem here. Remember that this is one of the fundamental questions in the discipline of Economics.

- What to produce? - For whom to produce?

- How to produce? - In what quantity?

Possible Production Quantities:

100, 110, 120, and 130

Mean Demand = 100

Standard Deviation = 20

Lowest possible demand = 100 - 20 = 80units

Highest possible demand = 100 + 20 = 120units

<u>* Solve, using the mean demand for each quantity level. Assume also that on every Monday, the minimum possible quantity is what is purchased. That's the safest assumption anyway.</u>

<u />

FOR QUANTITY 100,

Revenue = 7×100 = $700 Direct cost = 2×100 = $200

Indirect cost = 0.6×20 = $12 Total cost = 200 + 12 = $212

PROFIT = 700 - 212 = $488

FOR QUANTITY 110,

Revenue = 7×110 = $770 Direct cost = 2×110 = $220

Indirect cost = 0.6×30 = $18 Total cost = 220 + 18 = $238

PROFIT = 770 - 238 = $532

FOR QUANTITY 120,

Revenue = 7×120 = $840 Direct cost = 2×120 = $240

Indirect cost = 0.6×40 = $24 Total cost = $264

PROFIT = 840 - 264 = $576

FOR QUANTITY 130,

Revenue = 7×130 = $910 Direct cost = 2×130 = $260

Indirect cost = 0.6×50 = $30 Total cost = $290

PROFIT = 910 - 290 = $620

<em>Remember, the base assumption is that only the minimum quantity of 80units is bought each Monday. This is the only way to account for wastage; which costs 0.6 dollar per unit. So, the more the quantity produced, the greater the likelihood of wastage.</em>

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3 years ago

14. Over a given year, nominal GDP increased by about 2.5%. Over that year, the GDP deflator decreased by about 4%. From this in

Mama L [17]

The answer is 1,009 and thats your answer

8 0

2 years ago

(a) how are bonds rated? (b) how are these rating helpful to the investors?

Jet001 [13]

Answer:

a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.

b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.

Explanation:

a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.

There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.

b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.

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3 years ago