The answer is $48.
The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. $48 is the opportunity cost, assuming the seller sells internally
It is calculated as follows:
Opportunity cost= Production cost- Outlay cost
= 60-12
=$48
Opportunity costs represent the potential benefits which any individual or investor, or any business misses out on when choosing one alternative over another.
Because the opportunity costs are generally unseen by definition, they can be easily overlooked. Understanding of the potential missed opportunities when any business or any individual chooses one investment over another investment allows for better decision making.
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Answer:
Required rate of return for the project = 9.7%
Explanation:
The risk-adjusted discount factor = cost of equity + the adjustment
Cost of equity can be calculated using the capital asset pricing model CAPM
Using the CAPM , the rate of return on equity can be determined as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 3.3%, Rm- 7.5%, β- 0.94
Cost of equity = Rf + β (Rm -Rf)
Cost of equity = 3.3% + 0.94×(7.5-3.3)= 7.248
The risk-adjusted discount factor= 7.248 + 2.5= 9.748
Required rate of return for the project = 9.7%
90 days past due to be considered delinquent
Answer:
Barry cannot contribute any amount to Roth IRA
Explanation:
For a single/ unmarried individual to be able to contribute to Roth IRA plan, his Adjustable Gross Income (AGI) should range between $117,000 and $132,000. Since Barry's annual income is $190,000, which is higher than the maximum AGI required for a single to be able to contribute to Roth IRA, he cannot contribute to Roth IRA.
Answer:
C. straight rebuy
Explanation:
Straight rebuy -
It is the method , when the customer purchases another identical goods in the same amount with the same terms and condition , from the very same supplier , is known as straight rebuy .
Hence , from the question ,
The United States Navy buys uniform from the same supplier for the last 25 years .
Therefore ,
the information given in the question is about straight rebuy .
