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mezya [45]
3 years ago
12

Global Enterprises has spent $134,000 on research developing a new type of shoe. For this shoe to now be manufactured, the firm

will need to expand into an empty building that it currently owns the firm was offered $229,000 last week for that building an additional $342.000 will be required for new equipment and building improvements. Labor and material costs are estimated at $4.98 per pair of shoes. Interest expense on the loan needed to finance the production of this new shoe will be $17, 800 a year. Which one of these correctly identifies the sunk costs? A. $229,000 value of the building B. $134,000 for research C. $229,000 value of the building plus $342,000 for new equipment and improvements D. $17, 800 for interest plus $134,000 for research E. $229,000 for the building plus $134,000 for research
Business
1 answer:
RUDIKE [14]3 years ago
7 0

Answer:

Which one of these correctly identifies the sunk costs?

  • B. $134,000 for research

Explanation:

Sunk costs are costs that have already been spent and cannot be recovered by the company. In this case, only the research and development costs can be considered a sunk cost. The land has a market value and if the company decides to sell it, they would get paid for it. Additional investments or costs have not been incurred yet, so they are only planned or estimated costs.  

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Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena.
nasty-shy [4]

Answer:

Comparability

Explanation:

Comparability is a quality of information that allows individuals to be able to analyze two or more sets of information, to determine if there are similarities or differences in the sets of information.

Simply put, comparability is the abilty to compare sets of information or anything to each otther to pick out similarities or differences.

I hope this helps.

7 0
3 years ago
You have renter's insurance for your personal property in your apartment. 4 points Your coverage limit is $25,000. You have $8,0
docker41 [41]

Answer:

meat that you eat is good for you i think

Explanation:

5 0
3 years ago
Prestige Manufacturing Corporation reports the following items in its statement of cash flows presented using the direct method.
bonufazy [111]

Answer:

1. Payment for equipment purchase =  investing activities (I)

2. Repayments of bank loan = financing activities (F)

3. Dividends paid = financing activities (F)

4. Proceeds from issuance of stock = financing activities (F)

5. Interest paid = operating activities (O)

6. Receipts from customers = operating activities (O)

Explanation:

Operating Activities are activities that generate cash in the ordinary course of business.

Investing Activities are activities that generate cash due to movement in capital expenditure balances

Financing Activities are activities that generate cash due to sourcing of funds or changes in ownership.

5 0
3 years ago
An Uber driver faces costs for driving that include sunk costs like insurance that contribute to the average cost per mile of $.
crimeas [40]

Answer: sunk costs don't increase as driving increases.

Explanation: sunk costs are irrelevant costs because they have already occured in the past and cannot be avoided. Sunk costs thus do not differ between alternatives, and are unavoidable. The calculation for insurance and other sunk costs are likely not based on the amount of rides the Uber picks up, but rather calculated at a constant rate. So regardless of whether or not the rider pays more or less than the $.50 on the insurance, this will not have any effect on the insurance that is constant and has likely already been paid out.

4 0
3 years ago
Logan Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 8
slava [35]

Answer:

E) 0 units of A and 200,000 units of Z.

Explanation:

In order to estimate the profit maximizing sales mix we first calculate the contribution per product per limiting factor. Limiting factor in this case is the labor hours.

So,

Contribution per hour if A is made = 8 * 12 = $96

Contribution per hour if Z is made = 10 * 10 = $100,

Therefore Z holds priority,

Since there is no sales mix we need to follow we can just make Z for maximizing profits and as such We make 20000 * 10 = 200,000 units of Z and 0 units of A.

Hope that helps.

6 0
4 years ago
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