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dusya [7]
2 years ago
13

Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,00

0 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is Kelly's annual opportunity cost (implicit plus explicit costs) of the financial capital that has been invested in the business?
A) $170
B) $140
C) $30
D) $300
Business
1 answer:
sergeinik [125]2 years ago
7 0

Answer:

$170

Explanation:

Since Kelly withdrew $1000, he lost the potential $30 he could've earned in interest. Also, when he borrowed $2000, the interest rate of 7% was $140. So, the implicit+explicit cost is 140 + 30 = $170.

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4 0
3 years ago
US Apparel (USA) manufactures plain white and solid-colored T-shirts. Budgeted inputs include the following
Artemon [7]

Answer:

A) USA will not be better off switching to the new dye since the cost is greater than the Fine

B)  $118076

C)  The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials

while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset

Explanation:

<u>A) Determine If the USA be better off using the new dye </u>

Units of clothes to be dyed = 50,000

Difference in cost = [ 4 ( 1.25 - 0.5 ) ] = 4 * 0.75 = $3

Total cost of using the new dye = 50000 * $3 = $150,000

Fine = $130,000

hence USA will not be better off switching to the new dye since the cost is greater than the Fine

<u>B) Determine by how much overall cost will be reduced at the end of 12 months using Kaizen costing </u>

<em>condition : reduce fabric and labor cost by 1%</em>

Original Monthly Costs without the use of Kaizen Costing =( Total Units/Number of Months)*(Fabric Cost per Unit + Labor Cost per Unit)*Number of Months

= [( 10000 + 50000 )/12 ) * ( 6 + 4 ) ] *12

= [ 5000 * 10 ] *12  = $600,000

Applying kaizen costing

Given: Fabric cost per unit = $6 , Labor cost per unit = $4

          Total units of production = 10000 + 50000 = 60,000

Kaizen costing formula per month = [ (cost per unit * total units / 12 ) - ( 1% of cost per unit * total units / 12) ]

Total annual cost using Kaizen costing = $56807.61

difference in cost = $600,000 - $568076 = $31924

with the new dye and Kaizen costing the overall cost will be change by $118076  i.e. ($150,000 - $31924) = <em>$118076 </em>

C ) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials

while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset

5 0
2 years ago
you are a trust fund baby, but you cannot touch your money until you are 30. you are now 21 and want to plan for your future bas
meriva

Answer:

Explanation:

30 - 21 = 9 years

r = 3% inflation

FV = 25,000

We know that FV = PV(1+r)^n

25,000 = PV(1+0.03)^9

PV = 25,000/ 1.3047731

PV = 19,160.42, this is how much it worth today

6 0
3 years ago
George is ready to launch a designer tie collection under his own brand name. He now has to decide the right market price for hi
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Answer:

B. the amount the customer can pay

Explanation:

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8 0
3 years ago
The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example
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The merger is an example of

<h3>What is a vertical merger?</h3>

A merger occurs when one firm is absorbed by another firm. When a merger occurs, one of the firms would not exist as a separate entity while the other firm would continue to exist.

A vertical merger is when a firm purchases another firm in the same production line. e.g. a baker purchases a pastry distributing company.

To learn more about mergers, please check: brainly.com/question/1086715

5 0
2 years ago
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