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Mashutka [201]
2 years ago
8

At Sheridan Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player that normally sells for $49. A

foreign wholesaler offers to buy 4,570 units at $25 each. Sheridan Electronics will incur special shipping costs of $1 per unit. Assuming that Sheridan Electronics has excess operating capacity, indicate the net income (loss) Sheridan Electronics would realize by accepting the special order.
The special order should be:________
Business
1 answer:
svlad2 [7]2 years ago
4 0

Answer:

                                                    Reject        Accept               Net Income

                                                     order         order      increase / (decrease)

Revenues                                       $0           $114,250           $114,250

                                                                     (4570*25)

Cost - variable manufacturing      $0           $73,120            ($73,120)

                                                                      (4570*16)

Shipping                                         $0          $4,570              ($4,570)

                                                                      (4570*1)

Net Income                                    $0           $36,560            $36,560

So, the special order should be accepted.

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Bullie Jean has $1.20 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music whi
Rasek [7]

Answer: b. people face trade-offs

Explanation:

From the question, we are informed that Bullie Jean has $120 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music while working out.

We are further informed that the amplifier and the mp3 player cost $120, each and so she can only buy one. This shows that people face trade offs and have to make a choice regarding some decisions. Here, an opportunity cost will be the one that she didn't buy at the expense of the other.

6 0
3 years ago
An investment of $1 each in two different securities led to a value of $11 (Security A) and $16 (Security B), respectively, afte
jonny [76]

Answer:

A

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

Security A : 11 = 1( 1 + r)^15

11^(1/15) =  1( 1 + r)

1.173 = 1 + r

r = 1.173 - 1

r = 17.33%

Security A : 16 = 1( 1 + r)^15

16^(1/15) =  1( 1 + r)

1.20 = 1 + r

r = 1.2 - 1

r = 0.2

r = 20%

Security B earned a higher average annual rate of return as 20% is greater than 17.33%

3 0
3 years ago
If the inflation rate decreased from 3.33% to 2.90% between October and November, while the nominal interest rate increased from
Rudiy27

Answer:

1.90%

Explanation:

There is the accordance or connection between nominal and real interest rates. It is basically possible to convert from nominal interest rates to real interest rates. According to the Fisher, there is a equation that's called the Fisher Equation:

Real interest rate ≈ nominal interest rate − inflation rate.

On our example,

Inflation rate in October- 3.33%

Inflation rate in November- 2.90%

Nominal interest rate in October- 4.75%

Nominal interest rate in November- 4.80%

In October,

Real interest rate=4.75%-3.33%=1.42%

In November,

Real interest rate=4.80%-2.90%=1.90%

As a result, we see that there is 1.90% real interest rate in November and the real interest rate has increased 0.48% in November compared to October.

7 0
3 years ago
Read 2 more answers
Preston Industries has two separate divisions. Each division is in a separate line of business. Division A is the largest divisi
bogdanovich [222]

Answer:

D. assign appropriate, but differing, discount rates to each project and then select the projects with the highest net present values.

Explanation:

Even though Division A is the largest and produce the highest amount of sales, it will not be selected based on this factor but its net present value(NPV). This will determine if the sales actually can fully recover the initial investment amount and yield a profit. Therefore, since Division A and B have different levels of risk, it will be appropriate to find their NPVs using different discount rates and accept the one with the highest NPV.

8 0
3 years ago
In what way is the mississippi college savings account program helping to bridge the economic divide?
3241004551 [841]

Answer:

The mississippi college savings account program helps children save for more expensive schools by starting a savings account at a very young age.

The Mississippi College Savings Account Plan is helping bridge the economic drive by allowing the students to become familiar with the banking service, getting them used to the banking system and saving accounts.

4 0
2 years ago
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