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padilas [110]
3 years ago
10

What is an opportunity cost

Business
1 answer:
xxMikexx [17]3 years ago
7 0

Answer:

B

Explanation:

Opportunity cost is the valje of the next best alternative forgone when a choice is made.

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"Elkhorn, Inc., which has excess capacity, received a special order for 4,000 units at a price of $15 per unit. Currently, produ
Degger [83]

Answer:

Profit from sale of special order of 4,000 units increase by $14000

Explanation:

given data

order = 4000 units

Sales = $ 190,000  

Cost of Goods Sold = 45,000  

Gross Margin = $45,000

Sales price per unit = $15

solution

as we know that Elkhorn has excess capacity

so sales of 4000 additional units would not affect current sales of 10,000 units

and by production of excess 4000 units fixed cost would not increase

so Variable cost per unit will be

Variable cost per unit = \frac{145000 - 30000}{10000}

Variable cost per unit = $11.5

so

Profit per unit will be

Profit per unit = Sales price -  Variable cost

Profit per unit = $15 - $11.5

Profit per unit = $3.5

so

Profit from sale of special order of 4,000 units increase as  = 4000 × $3.5

Profit from sale of special order of 4,000 units increase by $14000

7 0
3 years ago
Laura's father, Albert, gave Laura a gift of 500 shares of Liba Corporation common stock in 2017. Albert's basis for the Liba st
Vikentia [17]

Answer:

B) $3,000

Explanation:

Since Laura acquired this property (stocks) by gift, her basis for loss will be $3,000 which is equal to the fair market value at the time she received the gift. If she had made a gain with this transaction, her basis for gain would have been the $4,000 of her father's basis.

7 0
3 years ago
When McDonald's started customizing its product offerings to suit differing regional tastes, such as offering vegetarian product
bezimeni [28]

Answer:

The correct answer is (A) Localization strategy

Explanation:

It is one of the most important strategic decisions that companies make. Localization can also influence other costs such as taxes, wages, raw materials and income. Companies make location decisions infrequently, usually because demand has exceeded the current capacity of the plant or due to changes in labor productivity, exchange rate, costs or local attitudes. Companies also relocate their manufacturing facilities or services due to demographic changes or consumer demand. Location alternatives include (1) expanding an existing installation instead of moving it; (2) maintain the current sites while opening facilities somewhere else, or (3) close existing facilities and move to a new location.

The location decision often depends on the type of business. For industrial location decisions, the usual strategy is to minimize costs, although innovation and creativity can also be critical. For retail organizations or professional services, the strategy focuses on maximizing revenue. However, the warehouse location strategy can be guided by a combination of costs and speed of delivery. The objective of the location strategy is to maximize the benefit of the location for the company.

3 0
4 years ago
Which statement is correct? In the short run, the pure monopolist will maximize total profits by producing at that level of outp
inysia [295]

Answer: Pure monopolists do not always realize economic profits.

Explanation:

Even though Pure Monopolies are the only sellers or makers of a good in a market and can therefore set their own prices, this does not mean that they will always make a profit talk more an economic one.

In the short run for instance, a Pure monopoly could see its average cost higher than its average revenue because some factors of production could not be varied. In this scenario, the monopolist would realize economic losses.

7 0
3 years ago
Once account numbers have been enabled, where can the numbers be assigned and edited?
Aleks [24]

Answer: Chart of Accounts

Explanation:

Once account numbers have been enabled, the numbers be assigned and edited in the chart of accounts.

To assign the account numbers, one needs to go to the accounting menu and then the chart of accounts will be selected. After that, one will select batch edit which can be seen in the action menu and add the account numbers after which one will then save. In order to see the account numbers,one can then go to chart of accounts

6 0
3 years ago
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