Answer
A= Net operating loss = (924800)
B= Net operating profit = $9000
Explanation: A B
(Poinsettia) (Fruit tree)
$ $
Sales =970000 ; = 3100000
less: Variable cost of goods sold = (<u>460000</u>) ; =(<u>1630000</u>)
Gross contribution margin 510000 ; 1470000
Less: <u>Selling expense (4% o sales)</u>
A (970000*4%)
B(310000 *4%) ( <u>38800</u>) ; ( <u>124000</u>)
Contribution margin 471200 ; 1346000
Less: Fixed overheads <u> (800000</u>) ; <u> (800000)</u>
(328800) ; 546000
less: Fixed Selling & admin expense <u>(146000)</u> ; <u> (87000) </u>
(474800) ; (459000)
Less: Common selling and admin expense (<u>450000) </u> ; (<u>450000)</u>
Net operating income /( loss) (924800) ; 9000
Answer:
The workers will only produce oranges.
Explanation:
'Opportunity cost' is an important concept which shows the relationship between choice and scarcity. For example: One can spend money and time on one thing at a time but loses the opportunity do perform the other things, which would be his opportunity cost. Like you take a vacation for the money you have but the opportunity cost is not having a new car.
Relative price is the price of one commodity in terms of another. In the given situation, opportunity cost of an apple is 3 oranges and relative price of apple is 3, so the workers will produce only oranges, as it will be more profitable.
Answer:
If I bougth the Machine at 14% interest.
This purchase is not justified
Depreciation expenses and credit interest are greater than the income generated
Explanation:
Machine 360000
Adittional cost 20000
Final Cost 380000
Salvage Value 73000
Machine value for depreciation 307000
year 1 307000 61400 245600
year 2 245600 61400 184200
year 3 184200 61400 122800
year 4 122800 61400 61400
year 5 61400 61400 0
Period Payment Capital Interest Loan
360000
1 104.862 54.462 50.400 305.538
2 104.862 62.087 42.775 243.451
3 104.862 70.779 34.083 172.672
4 104.862 80.688 24.174 91.984
5 104.862 91.984 12.878 0
Depreciation 307000
Interes 164.310
Expenses 471.310
Revenue 430.000
Answer:
A) A test with a high cost may also be of high value.
Explanation:
A test's cost add up to the time spent in preparing that test. S much time might have really been spent on it like researching, sitting, time spent, revaluation of the test, as well as other contributions made for the execution of that test. The value of the test can be evaluated to the resources spent for the test. When a test has a high cost, it may also have a high value depending on some variables relating to both the cost of the test as well as its value. Also, every individual's primary objective is usually cost minimization and profit maximization in every thing he does irrespective of type or structure.