Answer: $
Retained earnings beginning balance 142,000
Net loss for the year <u>(14,000)</u>
128,000
Retained earnings ending balance <u> (122,000)</u>
Amount of dividend declared <u> 6,000</u>
Explanation: In order to calculate the amount of dividend declared, there is need to deduct the net loss for the year from retained retained earnings beginning balance. Thereafter, we also need to deduct retained earnings ending balance.
Regarding the Production Possibilities Curve, a decrease in the unemployment rate will most likely move us from a point inside the PPC to a point closer to the PPC.
Option B;
<u>Explanation:
</u>
The curvature of production options measures the maximum capacity of two items by means of a specified input amount. There was a misunderstanding. Each item on the curve indicates how much every good is generated when assets change from one good to another. The curve tests the difference between one positive and another.
As somewhat of a movement within the Curve of production opportunities it may be decreased to a point nearer to the Curve of production opportunities as an inside point
.
Answer:
The average fixed cost to produce 7,000 can openers was <u>$17,000</u>
Explanation:
The fixed cost are those who don't change based on the production levels, while the variable costs depends on the production.
If we add variables cost with fixed cot we will get the total cost.
Variable cost + Fixed Cost = Total cost
Then for knowing the fixed cost we should substract to the total cost the variable cost
Fixed Cost = Total Cost - Variable Cost <em>Now replace the values </em>
Fixed Cost = $45,000 - 28,000
Fixed Cost = $ 17,000
The average fixed cost to produce 7,000 can openers was <u>$17,000</u>
<span>Speedboat is considered to be a luxury good. Income elasticity is considered to be positive with the level of income which means if the income level is higher then the demand for luxury goods will also be higher. In this case, as the income increases, the demand of speedboat will be increased. Hence, speedboat has a positive relation with income elasticity of demand.</span>
Answer:
NPW = -$136.539 million
The negative net present value means that the project is not financially feasible, and therefore the company does not approve or pursue this investment.
Explanation:
Data Given:
Initial cost = $150 million
Annual cost = $15 million
Annual revenue = $18 million
salvage value = $0
Time period = 8 years
MARR = 15%
Calculate Net present worth:
NPW = -$150 million + ($18 million - $15 million) (P/A, 15%, 8)
(P/A, 15%, 8) = 4.487
NPW = -$150 million + ($3 million * 4.487)
NPW = -$150 million + $13.461 million
NPW = -$136.539 million
The negative net present value means that the project is not financially feasible, and therefore the company does not approve or pursue this investment.
