Answer:
Sunk cost
Explanation:
The sunk cost is the cost already incurred that will not be recovered in the future. Plus, it's also called past expenses.
This expense is not considered at the time when the decisions are taking and it should be neglected as it is not relevant at the time of the decision-making process
In the given scenario since the amount already spent for a movie ticket and for popcorn and we know that we cannot recover now so it would be termed as a sunk cost
Answer and Explanation:
The Preparation of income statement for the year ending December 31, 2017 is shown below:-
<u> Oriole Company</u>
<u> Income Statement</u>
<u> For the Year Ended December 31, 2017</u>
Particulars Amount
Service Revenue $86,250
Less:
Expense
Salaries and Wages
Expense $38,640
Rent Expense $14,352
Utilities Expense $4,278
Advertising Expense $2,484
Total Expenses $59,754
Net Income/ (Loss) $26,496
Therefore for determining the net income/loss we simply deduct the total expenses from service revenue.
<span>A copayment is a fixed amount paid by a patient to the insurance company prior to a doctors’ visit. Insurance company ask the insured for copay to share health care cost, which is often a small portion of the actual cost of the medical service received. This is meant to prevent a person from seeking unnecessary medical care.</span>
The correct option is this: TO OFFER PRODUCTS AT LOWER PRICES, MANUFACTURERS MOVE THEIR PLANTS TO FOREIGN COUNTRIES WHERE LABOUR IS CHEAP LEAVING AMERICANS OUT OF A JOB.
The major reason for operating a business is to make profits. No matter the prices at which products are sold in the market, manufacturers usually ensure that they make some profits because that is the only way they can remain in business. Thus, in a situation where the prices of product is very low, manufacturers will look for means of cutting costs so that they can make some profits. That is why a company will prefer to move to a place where it can get cheaper labor for its products.<span />
Answer:
3.73%
Explanation:
The computation of the rate of interest that makes the equivalent is shown below:
As we know that
Present value=Cash flow × Present value discounting factor ( interest rate% , time period)
Let us assume the interest rate be x
where,
Present value of $400,000 is
= $400,000 ÷ 1.0x ^5
And,
Present value of $1,000,000 be
= $1,000,000 ÷ 1.0x^30
Now eqaute these two equations
$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30
(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000
1.0x^(30 - 5)=2.5
1.0x^25=2.5
1.0x = (2.5)^(1 ÷ 25)
x =1.03733158 - 1
= 3.73%
