Wages of 8,000 are earned by workers but not paid as of december 31

Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash op

mr_godi [17]

Answer:

a) 17.5%

Explanation:

The computation of the simple rate of return on the investment is shown below:

Simple rate of return = Annual net income ÷ Initial investment

where,

Annual net income is

= Sales revenue - cash operating expenses - depreciation expenses

= $250,000 - $100,000 - ($400,000 ÷ 5)

= $70,000

And, the initial investment is $400,000

So, the simple rate of return is

= $70,000 ÷ $400,000

= 17.5%

Dividing the annual net income by the initial investment we can get the simple rate of return

8 0

2 years ago

Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce onl

o-na [289]

Answer:

The correct answer is letter "A": Brazil only.

Explanation:

Comparative advantage is the ability of an organization or individual to produce at lower opportunity costs. This is achieved by introducing efficient productivity strategies or achieving economies of scale.

For the case given, the comparative advantage of Brazil and Chile is based on labor productivity only. Then:

The comparative advantage of Chile on sugar = $\frac{2 units of sugar}{5 units of coffee}$ = 0.4
The comparative advantage of Brazil on sugar = $\frac{1 unit of sugar}{2 units of coffee}$ = 0.5

Thus, Brazil has a comparative advantage over Chile on sugar.

4 0

2 years ago

"An automotive company was looking to expand internationally and selected three possible countries in which to build a factory.

zheka24 [161]

Answer: bribery and conflict of interest

Explanation: In simple words, bribery refers to the act under which one individual tries to persuade the behavior of another individual for his benefit by offering him or her monetary benefits.

Whereas, conflict of interest refers to a situation when someone has the authority to make decisions that benefits himself more than the entity he is working for.

Hence we can conclude that the above case depicts bribery and conflict of interest.

8 0

2 years ago

Bakers corp will pay a dividend of 5.15 8.05 and 11.25 per share for each of the next three years respectively. the company will

Pani-rosa [81]

Answer: $19.40

Explanation:

Based on the information given in the question, the following can be deduced:

D1 = $5.15

D2 = $8.05

D3 = $11.25

Rate of return = 11% = 0.11

The current stick price will be calculated as:

= 5.15/(1 + 0.11) + 8.05/(1 + 0.11)^2 + 11.25/(1 + 0.11)^3

= 5.15/1.11 + 8.05/(1.11)^2 + 11.25/(1.11)^3

= $4.64 + $6.53 + $8.23

= $19.40

5 0

3 years ago

When Hal sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it p

lozanna [386]

Complete question:

When Hal sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor __________.

A will necessitate renegotiating price and delivery terms.

B allows for a straight rebuy.

C offsets a consensus buying center culture.

D will probably not be an advantage in getting the new order.

E will allow Val to get the order even though his products do not meet the specifications.

Answer:

In this situation, being the current vendor will probably not be an advantage in getting the new order.

Explanation:

A request for proposal (RFP) is a paper which requests prospective suppliers to make business proposals to submit proposals, which are often made by a bidder, by an organization, corporation or a bidder involved in purchasing a product, service or valued item.

The RFP outlines the tendering process and contract requirements and directs the design of the tender.

Government organizations use RFPs mainly to get the lowest bid possible.

RFPs allow the requester to obtain multiple bidders.

8 0

2 years ago