Answer:
$45,000
Explanation:
Provided information,
Actual cost of production
Direct material = $15,000
Direct Labor = $6,000
Variable Overhead = $16,000
Total variable cost = $37,000
Cost per unit = $37,000/100 = $370 per unit
Also total fixed cost = $8,000
Total cost = $45,000
Cost per unit = $450
In case of purchasing units cost avoidable = Variable costs + Fixed cost up to $2,000
Therefore, Sheffield will be willing to pay $37,000 + $8,000 that is the actual cost in case of manufacturing not more than that. = $45,000
Black markets are illegal markets that emerge in response to price controls. A few buyers are able to obtain the good at the open-market price; the rest must resort to illegal means. The additional demand is met by underground suppliers selling at much higher prices.
The government does not support the black market or any of their actions with getting items and selling them in other forms. Those who are in demand of a good when they have a hard time in getting it may purchase it illegally at a higher price just so they can receive that good. When there is an exchange of goods in the black market, these items are usually prohibited by the government and therefor illegally being sold.
Answer: 2.5%
Explanation:
Treasury bonds have no default risk as they are backed by the U.S. government. The premiums that make up the yield are the inflation, liquidity and maturity risk premiums.
Required yield on Treasury bond = Inflation premium + Liquidity premium + Maturity risk premium
4.5% = 2% + 0% + Maturity risk premium
MRP = 4.5% - 2% - 0%
= 2.5%
Answer:
$61
Explanation:
Calculation for What futures price will allow $1,000 to be withdrawn from the margin account
Let x be the futures price
Futures price =1000 units(x-$60 per units) = $1,000 loss
x-$60=$1,000/1000 units
x-$60 = $1
x=$60+$1
x = $61
Therefore the futures price that will allow $1,000 to be withdrawn from the margin account will be $61
Answer:
externalities
Explanation:
Based on the scenario being described within the question it can be said that this provides the location-specific advantage of externalities. This term refers to the consequences/benefits incurred from third party activities whether or not you are part of that industry or market. Which in this case having all the companies in a specific location allows them to benefit from one another without there being an intent to.