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frosja888 [35]
3 years ago
11

Suppose a country is able to produce a maximum of either 300 units of lumber or 100 units of rice. This country is currently all

ocating its labor resources to produce 75 units of lumber and 75 units of rice. To increase its lumber production by 6 units to 81, the country faces an opportunity cost of
A. 2 units of rice.

B. 6 units of rice.

C. 75 units of rice.

D. 18 units of rice
Business
1 answer:
DedPeter [7]3 years ago
3 0

Answer: A. 2 units of rice.

Explanation:

The opportunity cost of producing lumber is:

= Maximum rice production / maximum lumber production

= 100 / 300

= 1/3 units of rice

If the country wants to increase its lumber production by 6, it will incur an opportunity cost of:

= 6 * 1/3

= 2 units of rice

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An investor thought that market interest rates were going to decline. He paid $19,000 fora corporate bond with a face value of $
iren2701 [21]

Answer:

$22,251

Explanation:

Coupon rate = $2,000

Now, we calculate the seired sale price of the bonds:

19,000 = 2,000[P/A, 14%, 4] + S[P/F. 14%, 4]

19,000 = 2,000(2.9137) + S(0.592)

S = (19,000 - 5,827.4) / 0.592

S = 22251.01351351351

S = $22,251

So, he have to receive $22,251.

5 0
3 years ago
During 2018, Raines Umbrella Corp. had sales of $763,000. Cost of goods sold, administrative and selling expenses, and depreciat
sleet_krkn [62]

Answer and Explanation:

The computation is shown below;

a. The net income or loss for the year 2018 is

Sales $763,000

Less: COGS $462,000

Less: A&S expenses $103,000

Less: Depreciation $148,500

EBIT $49,500

Less: Interest $73,800

Taxable income -$24,300

Less: Taxes(22%) $0

Net income(loss) -$24,300

Net loss = $24,300

b. The operating cash flow is

OCF = EBIT + Depreciation - Taxes

= $49,500 + $148,500 - $0

 = $198,000

4 0
3 years ago
Mary is selling her house for $100,000 and felipe, who is expecting an inheritance soon, wants to have the option to buy it next
Brilliant_brown [7]
If Felipe gets his inheritance then he and Mary can clinch their deal successfully and according to the terms they have worked out so that he will owe her $99,000 and she will get this money and he will get presumably a nice house.
5 0
4 years ago
When demand is unit​ elastic, a change in price causes total revenue to stay the same because A. total revenue never changes wit
Keith_Richards [23]

Answer:

B. the percentage change in quantity demanded exactly offsets the percentage change in price

Explanation:

Unit elastic demand is an economic theory that assumes a change in price will cause an equal proportional change in quantity demanded.

8 0
3 years ago
Gladstone Co. has expected sales of $360,000 for the upcoming month and its monthly break even sales are $342,500. What is the m
antoniya [11.8K]

Answer:

4.86%

Explanation:

Given that

Expected sales = $360,000

Break-even sales = $342,500

The computation of the margin of safety is shown below:-

Margin of safety (in percent) = (Expected sales - Break-even sales) ÷ Expected sales

= ($360,000 - $342,500) ÷ $360,000

= $17500 ÷ $360,000

= 4.86%

Therefore, for computing the margin of safety we simply deduct break even sales from expected sales and after result we divide with expected sales.

3 0
3 years ago
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