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Harrizon [31]
3 years ago
6

Corny Solutions processes various corn related food items. One of its facilities located in Iowa, performs some initial processi

ng of corn on the cob once it arrives from the corn fields. The corn from that facility will be further processed elsewhere into corn for popping and corn meal. The costs incurred at the Iowa plant would be considered ________. a. common costs
b. fixed costs
c. distinct costs
d.combined costs
Business
1 answer:
Novay_Z [31]3 years ago
5 0

Answer:

correct option is a. common costs

Explanation:

solution

As common costs are  those associated with operating a facility shared by the two departments

and here One facility located in Iowa  and corn from the facility will be more further process into the corn for popping and the cornmeal

so as given cost at given costs at Iowa plant is common costs

so correct option is a. common costs

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As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $180,000 at the end of five years. b
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Answer:

i. Discounted cashflow equations.

a.  $180,000 at the end of five years.

This is a lump sum present value/ discounted cashflow which can be calculated as;

Formula = 180,000 / ( 1 + r)^n

= 180,000/ ( 1 + 12%)^5

= $102,136.83

b. $11,400 a year forever

This is a perpetuity. The present value/ discounted cashflow of a perpetuity is calculated as;

Formula = Amount/rate

= 11,400/12%

= $95,000

c. $19,000 for each of 10 years.

This is an annuity. The formula for calculating the Present value/ discounted cashflow of an annuity is;

Formula = Annuity * [\frac{( 1 - (1 + i)^{-n} )}{i} ] where <em>i </em>is interest rate and <em>n</em> is number of periods

= 19,000 * [\frac{( 1 - (1 + 0.12)^{-10} )}{0.12} ]

= $107,354.24

d. $6,500 next year and increasing thereafter by 5% a year forever.

This is a growing perpetuity. The present value/ discounted cashflow formula is;

= Amount / ( discount rate - growth rate)

= 6,500 / ( 12% - 5%)

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7 0
3 years ago
Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?.
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Consumer and producer surplus.
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2 years ago
Suppose that in an attempt to induce citizens to conserve energy, the government enacts regulations requiring all air conditione
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Answer:

(A) Because the regulation effectively reduced the price of cool air, consumers with sufficiently elastic demand might have bought substantially more of it.

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If the demand for energy services remains constant, improving energy efficiency will reduce energy consumption and carbon emissions. However, many efficiency improvements do not reduce energy consumption by the amount provided by simple engineering models. This is because they make energy services cheaper and therefore increases the consumption of those services.

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3 years ago
A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to
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Answer:

Part a. Manufacturing the goods at home and let overseas sales managers handle the marketing.

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Disadvantages

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Part c. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm

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Disadvantages

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