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Arada [10]
2 years ago
11

Congratulations! You won a prize in a contest! There are two choices: take the $500 prize today or wait one year and take the $5

00 prize a year from now. If the interest rate is 3%, compounded annually, how much interest would you be giving up if you took the prize a year from now?
Business
1 answer:
natulia [17]2 years ago
6 0

Answer:

$15

Explanation:

The formula for calumniating compound interest is as below

A= P x ( 1 + r) ^1

For this case

A= Amount after one year

P = principal: $500

r= Interest rate 3% or 0.03

n = time in years: 1

A= $500 x ( 1 + 0.03) ^ 1

A = $500 x(1.03)

A= $500 x 1.03

A =$515

The interest missed is the future value -  amount collected after one year.

=$515- $500

=$15

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Bookkeeping refers to the process of ____ the accounting transactions of a firm.
sattari [20]
Recording , tracking.....
8 0
3 years ago
Explain precisely why ‘Opportunity Cost’ is always a RELATIVE concept and is never to be construed in ABSOLUTE terms. In additio
telo118 [61]

Answer:

Opportunity costs are defined as the additional costs or benefits lost from choosing one activity or investment over another alternative. It is a relative concept because you cannot be 100% sure that the other investments or activities would have yielded a specific gain.

For example, when you calculate the economic cost of starting your own business, you consider your current salary as an opportunity cost. But what happens if you get fired (or the company closes), your opportunity cost would have been $0? Or how can you exactly measure your future salaries? Maybe in a couple of years you get promoted to manager, or maybe not?

The same applies to economies, since the opportunity cost of producing certain tradable goods is not always fixed, it might decrease or increase due to productivity or efficiency changes. But in order to calculate or determine we must include the most probable option.

In microeconomics, a strictly convex production possibilities frontier function must include a combination of both goods. In strict convexity, the second derivative f''(x) ˃ 0, so the PFF curve cannot be straight, it must have a slope.

When we calculate the opportunity costs of PPF, we usually try to determine which product has the lowest opportunity cost, but that is not an interior solution because both goods are not being produced (the curve is not strictly convex). On a strictly convex curve, as you approach the extremes the opportunity cost of producing one good is high, but on the center the opportunity cost is much lower.

3 0
3 years ago
Lego Company has used the FIFO method since it began operations in 2023. Lego changed to the weighted average method in 2026. Th
Viktor [21]

Answer:

c. $14,000 increase

hope it helps

mark me as brainloeast

5 0
3 years ago
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead
enot [183]

Answer:

$23,122

Explanation:

Calculation to determine the overhead cost assigned to Product C9 under activity-based costing

First step is to calculate the cost allocation to machining activity and order filling

MACHINING

Equipment depreciation (0.60 : 0.10 : 0.30)

Machining=$47,000 x 0.60 = $28,200

Supervisory expense (0.60 : 0.20 : 0.20) Machining=$6,000 x 0.60 = $3600

Total $31,800

($28,200+$3,600)

ORDER FILLING

Equipment depreciation (0.60 : 0.10 : 0.30)

Order filling=$47,000 x 0.10 = $4,700

Supervisory expense (0.60 : 0.20 : 0.20)

Order filling=$6000 x 0.20 = $1,200

Total $5,900

($4,700+$1,200)

Second step is to calculate the Assign overhead costs to products:

Assign overhead costs to products:

Machining= $31,800 ÷ 10,000 MHs

Machining= $3.18 per MHOrder

Order Filling=$5,900 ÷ 1,000 orders

Order Filling = $5.90 per order

Now let calculate the Overhead cost for Product C9

Machining= $3.18 per MH × 6,900

Machining=$21,942

Order Filling= $5.90 per order × 200 Orders Order Filling=$1,180

TOTAL $23,122

($21,942+$1,180)

Therefore the overhead cost assigned to Product C9 under activity-based costing is $23,122

5 0
2 years ago
Classic Limo, Inc. provides limousine service to Tri-Cities airport. The price of the service is fixed at a flat rate for each t
Illusion [34]

Answer:

1) See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.

2) The scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.

Explanation:

1) Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc.

Note: See the attached excel file for the analysis of the possible operating income for Classic Limo, Inc.

2) If you were manager of Classic Limo, Inc. and had to choose only one budget scenario to use for planning for the year, which one of the nine scenarios would you choose?

The scenario that would be chosen is the scenario with the highest operating profit $280,500 which is Excellent with $40 Contribution Margin and 10,500 Numbers of Customers.

Download xlsx
4 0
3 years ago
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