An assessment of costs and benefits inevitably involves

Joe sold gold coins for $1,000 that he bought a year ago for $1,000. he says, "at least i didn't lose any money on my financial

solniwko [45]

The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />

3 0

3 years ago

Read 2 more answers

The following income statements were drawn from the annual reports of the Denver Company and the Reno Company: Denver* Reno* Net

Lynna [10]

Answer:

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

2. Return on sales ratio:

For Denver and the Reno is 18% and 10%

Explanation:

1. The formula to compute the gross margin percentage is shown below:

Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver = ($17,760 ÷ $33,200) × 100 = 53%

For Reno = ($23,850 ÷ $86,900) × 100 = 27%

2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

For Denver = ($6,000 ÷ $33,200) × 100 = 18%

For Reno = ($8,502 ÷ $86,900) × 100 = 10%

6 0

3 years ago

True or false: Subsection (d) under section 10 of the Federal Arbitration Act requires the court to review the merits of every c

Vanyuwa [196]

It is a <u>False </u>statment to say that subsection (D) of section 10 of the Federal Arbitration Act mandate that the court review the merits of every construction of a contract. The act speaks to Arbitration.

<h3>What does the Federal Arbitration Act of the United States of America say?</h3>

Subsection (D) of section 10 of the above stated Act state that the United States Court would vacate an award upon application by any of the party to the arbitration:

<em>Where the arbitrators exceeded their power or so imperfectly executed them that a mutual, final and definite award upon the subject matter submitted was not made.</em>

See the link below for more about Arbitration:

brainly.com/question/1139969

5 0

2 years ago

E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di

Aloiza [94]

The value of current stock price is equal to $57.93

<u>Explanation:</u>

Given dividend = $20 per year

The calculation of current stock price is as follows:

The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250

Current stock price ( present value ) = $\mathrm{FV} /(1+\mathrm{r})^{\wedge} \mathrm{n}$

$=\$ 250 /(1+0.08) \wedge 19$

After calculating, we get, 57.92801

Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).

7 0

3 years ago

White Sands Heavy Equipment Co. produces industrial equipment that it sells through its national sales force.

Tcecarenko [31]

Answer:E. a flexible price policy

Explanation:

The flexible price policy is a bargaining system between the buyer and seller to trade together at an agreed price.

The FOB seller factory price policy means where the ownership of the goods transferred to buyer, Robinson's act is only to prevent price discrimenation in the retail industry from the producers, a skimming price policy makes use of dual prices whithin a time interval, a status quo pricing objective is to maintain homogeneous price in the market among the sellers.

3 0

3 years ago