Its an asset of the household or business.
Answer:
18.65%
Explanation:
Cost = $12,300
Total Payment = $420 × 36
= $15,120
Difference in the cost and payment = $15,120 - $12,300 = $2,820
Interest rate is the ratio of the interest to the original cost of the item.
The interest is the difference between the amount paid and the actual cost.
Interest rate = ($2,820/$15,120) × 100%
= 18.65%
Answer:
Thailand:
Opportunity cost of computers = 300/20 = 15 tons of rice
US:
Opportunity cost of computers = 800/100 = 8 tons of rice
US has a comparative advantage in production of computers
Absence of trade:
Thailand consumes 150 tons of rice, it can consume = (300 - 150)/30 x 2 = 10 computers
US consumes 50 computers, it can consume = 400 tons of rice
After trade :
10 computers exchanged for 120 tons of rice
Thailand continues to consume 150 tons of rice, it will consume = 12 computers (=10 + 30/15)
US continues to consume 50 computers, it will consume = 440 tons of rice (=120 + 40 x 8)
Both would accept the proposal as both are better off with trade
Missing information:
Corporation makes 5,700 units of part U13 each year. This part is used in one of the company's products. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $9.60 Direct labor $7.80 Variable manufacturing overhead $10.20 Supervisor's salary $5.90 Depreciation of special equipment $8.80 Allocated general overhead $8.00 An outside supplier has offered to make and sell the part to the company for $25.10 each.
Answer:
annual financial advantage of purchasing part from outside vendor = $73,380
Explanation:
current production costs per unit:
- direct materials $9.60
- direct labor $7.80
- variable manufacturing overhead $10.20
- supervisor's salary $5.90
- depreciation of special equipment $8.80
- allocated general overhead (fixed) $8.00
- total current costs per unit = $50.30
- total costs $50.30 x 5,700 units = $286,710
costs if company decides to purchase the part form outside vendor:
- purchase cost per unit $25.10
- deprecation of special equipment $8.80
- allocated general overhead $8.00
- total costs per unit = $41.90
- total costs $41.90 x 5,700 = $238,830
- - revenue generated from using facility space = $238,830 - $25,500 = $213,330
annual financial advantage of purchasing part from outside vendor = $286,710 - $213,330 = $73,380
