Explanation:
Italy's opportunity cost of producing a pound of cheese is
= 5 barrels of beer
Germany's opportunity cost of producing a pound of cheese is
= 10 barrels of beer
Italy's opportunity cost of producing a barrel of beer is
= ![\frac{1}{5}](https://tex.z-dn.net/?f=%5Cfrac%7B1%7D%7B5%7D)
= 0.2 pounds of cheese
Germany's opportunity cost of producing a barrel of beer is
= ![\frac{1}{10}](https://tex.z-dn.net/?f=%5Cfrac%7B1%7D%7B10%7D)
= 0.1 pounds of cheese
Italy has a comparative advantage in producing cheese, while Germany has a comparative advantage in producing beer.
A country is said to be enjoying a comparative advantage if it can produce a good at a lower opportunity cost.
Italy can gain from trade if it is getting more than 5 barrels of beer for each pound of cheese. Similarly, Germany can gain from trade if it is getting more than 0.1 pounds of cheese.
Both the countries will gain from the trade if the price of trade is 8 barrels of beer per pound of cheese and 9 barrels of beer per pound of cheese.
Italy will not accept 3 barrels of beer per pound of cheese and 1 barrel of beer per pound of cheese because it is not covering the opportunity cost.
Answer:
$1,300
Explanation:
Net Cash Flow from Operating Activities represents the cash generated or used in regular business transactions of company, which are not investing or finance transactions.
Here, in the given instance:
Issue of stock is a financing transaction.
Providing services on account is not a cash transaction and will not be reported.
Paying cash is an operating expense, as paid for operating transaction = $2,600
Collecting cash from accounts receivables is operating transaction = $3,900
Payment of dividend is financing activity.
Thus, net cash generated from operating activities = $3,900 - $2,600 = $1,300
Answer:
COGS= $3,150
Explanation:
Giving the following information:
beginning inventory of 650 units at $9 each
purchases 900 units at $8 each
purchases 400 units at $10 each
Xu sells 350 units during the quarter.
First, we need to calculate the weighted average cost:
weighted average cost= (9 + 8 + 10)/3= 9
Now, the cost of goods sold:
COGS= 350*9= $3,150