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il63 [147K]
3 years ago
7

Scenario 13-1 Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000. Kor

ie currently has $500,000 in the bank earning 3 percent interest per year. Refer to Scenario 13-1. Suppose Korie purchases the factory using $200,000 of her own money and $200,000 borrowed from a bank at an interest rate of 6 percent. What is Korie's annual opportunity cost of purchasing the factory?
A. $18,000
B. $6,000
C. $3,000
Business
1 answer:
viktelen [127]3 years ago
4 0
The answer is C.$3,000
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High-Rise Boots Corp. plans to expand into the European market where it finds weak pressure to respond to local demands and cost
Alekssandra [29.7K]

Answer: Home replication strategy

Explanation:

The competitive strategy should the company use based on these factors is the home replication strategy. In this strategy, there is a minimal need for flexibility or modifications.

Since the company finds weak pressure to respond to local demands and cost reductions are not necessary, then the home replication strategy is applicable.

7 0
3 years ago
Identify something you buy or sell that could be bought or sold using an auction. How would you run the auction? Do a benefit-co
denis-greek [22]

There are various things that could be bought or sold by an auction such as Collectibles and art, antiques, real estate sporting goods etc.

There are several ways to conduct an auction, but the first-price auction and second-price sealed-bid auctions are the most common. In first-price auctions, the person whose bid is highest than the base offer will win the auction. The highest bidder in a sealed-bid auction with a second price pays for the second-highest bid. If there are several bidders on a piece of real estate, for instance, the property will go to the highest bidder, but in this situation, the highest bidder will only have to pay the price of the second-highest bid.

The cost-benefit analysis indicates that auctions will aid in the sale of the rare products at a price over its minimum worth, based on the cost-benefit analysis. The best profit will therefore be made in this situation, but the consumer surplus is still positive.

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6 0
1 year ago
Amount Number of units sold 11,000 Selling price per unit $ 16 Variable selling expense per unit $ 1 Variable administrative exp
german

Traditional income statement : Net operating income $47,000

Contribution income statement : Net operating income  $25,000

1.

Traditional Income Statement

Sales  (11,000 x $16)                       $176,000

Cost of goods sold

(9,000 + 87,000 - 25,000)            ($71,000)

Gross Margin                                  105,000

Selling and administrative expenses:  

Selling expense

(11,000 x 1) + 22,000                      $33,000

Administrative expense

(11,000 x 1) + 14,000                       $25000

Net operating income                  $47,000

2.

Contribution format income statement

Sales                                                $176,000

Variable expenses:  

Cost of goods sold        71,000  

Selling expense              11,000  

Administrative expense  11,000      ($93,000)

Contribution Margin                         $83,000

Fixed expenses:  

Selling expense                33,000  

Administrative expense   25,000     (58,000)

Net operating income                     $25,000

Learn more about preparation of income statement here : brainly.com/question/24498019

3 0
2 years ago
Spartan Corporation, a U.S. corporation, reported $2 million of pretax income from its business operations in Spartania, which w
pashok25 [27]

Answer:

A. = (15% X $2M) + (21% X $2M) = $720,000. Since there is no mechanism for mitigating double taxation, the branch profit will be taxed on the to tax rate of 15% and 21% which is $300,000 and $420,000.

B. The total tax for $2m branch profit if US corporations can remove foreign based profit from US taxation will be just the 15% x $2m = $300,000.

C.If they are allowed to take deductions for foreign income taxes, the total tax on the $2m branch profit will be (21% -15%) x $2m = $120,000.

Explanation:

D.1. If credit are allowed for foreign income tax paid, total tax will be ($2m - $300,000 been foreign tax paid) x 21% = $357,000

D.2.

If the charge foreign income taxes at 30% and US corporations can claim refundable credit for foreign income tax paid on foreign source income = ($2m - $300,000 been the foreign income tax paid) = $1 700,000 x 30% = $510,000

8 0
3 years ago
Federal Trade Commission (FTC) regulations require that: Multiple Choice all used cars be sold with a warranty. used car buyers
alekssr [168]

Federal Trade Commission (FTC) regulations require that used car buyers be informed of whether or not the vehicle comes with a warranty.

<h3>What is the Federal Trade Commission </h3>

The Federal trade commission is a body that is saddled with the responsibility of enforceing federal consumer protection laws which are aimed at preventing fraud, deception and unfair business practices.

The Commission also prevents federal antitrust laws that guides against anticompetitive mergers and other business practices that could result in higher prices, fewer choices, or less innovation.

Learn more about the FTC at brainly.com/question/2376957

5 0
2 years ago
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