Answer: Japan ; Japan
Explanation:
Absolute advantage in the production of a good means that one is able to produce more of the good in a certain period of time. This can also mean that they take a shorter time to produce a single unit of a good.
Going by this definition, Japan has an absolute advantage in the production of both sedans and trucks because they take less time to produce both types of vehicles which means that they can produce more of both than the United States if given a certain period of time.
The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how much it pays does not affect either its cost of capital or its stock price.
a) true
b) false
Answer:
b) false
Explanation:
In the case of theory that developed by MM in this the investor have no need for concering with respect to the dividend policy of the company as in this the sell option is there with regard to the equity portfolio when they need the cash
So according to the given situation, the given statement is false
hence the option b is correct
Question 1(Multiple Choice Worth 10 points)
(04.04 LC)
Which is a possible effect of identity theft?
Increased mental stress
O Increased purchasing power
Decreased loan balances
Decreased debt to credit load
Answer:
Option A, Increased mental stress
Explanation:
Increased mental stress is one of the possible effect of identity theft.
It can cause following negative impacts on the mental and physical health of an individual
a) It causes sleep disturbance
b) Physical symptoms such as aches and pains, heart palpitations, sweating and stomach issues arises
c) Post stress disorder
d) Anxiety
Hence, option A is correct
Answer:
Option A, Increased mental stress
Explanation:
took the test
ABC Company rents its extra office space to XYZ Company for $600 per month. On November 1, 2020, ABC Company received $3,600 rent in advance from XYZ Company for the months of November 2020, December 2020, January 2021, February 2021, March 2021, and April 2021. The adjusting entry on December 31, 2020 (the end of the fiscal year) would include:
Answer:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
Explanation:
The adjusting entry on December 31, 2020 would include:
Debit : Rent Paid in Advance $1,200
Credit : Rent Income $1,200
In August 2005, Hurricane Katrina damaged or destroyed oil platforms in the Gulf of Mexico, refineries along the Gulf coast, and the pipeline infrastructure that transports oil and gas to customers across the eastern United States. The winter of 2006 was unusually cold in many parts of the country. How did these events affect the market (equilibrium) price and quantity for natural gas
Answer:
Increased equilibrium market price Decreased equilibrium quantityExplanation:
As a result of the hurricane, oil platforms and refineries were destroyed. This reduced the amount of natural gas being processed by these facilities. With less natural gas being processed, less gas was being supplied to the country which means that the quantity supplied reduced.
This would shift the supply curve to the left and it would then intersect with the demand curve at a higher equilibrium price. This higher price reflects the relative scarcity of natural gas.
On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 salvage value. The company uses the straight-line method. What are the amounts of depreciation expense and accumulated depreciation, respectively, that will be reported in the Year 2 financial statements
Answer:
3600
7200
Explanation:
Nash Company purchased a computer for $8,160 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,020 salvage value. On January 1, 2021, the estimates are revised. Nash now feels the computer will be used until December 31, 2022, when it can be sold for $510. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 $
Answer:
$2,397
Explanation:
Straight line method charges a fixed amount of depreciation
Depreciation Charge = (Cost - Residual Value) ÷ Estimated useful life
therefore,
Annual depreciation charge
2019
Depreciation Charge = $1,428
2020
Depreciation Charge = $1,428
2021
Depreciation Charge = ($8,160 - $1,428 - $1,428 - $510) ÷ 2
= $2,397
therefore,
Depreciation expense, 2021 is $2,397
Explain the impact of taxation on the valuation of a country's currency
Answer:
The value of a currency depends on factors that affect the economy such as imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices
Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is 10% for both stocks. You require a rate of return of 11% on stock A and a return of 20% on stock B. The intrinsic value of stock A
A. will be greater than the intrinsic value of stock B.
B. will be the same as the intrinsic value of stock B.
C. will be less than the intrinsic value of stock B.
D. cannot be calculated without knowing the market rate of return.
Answer:
a
Explanation:
Intrinsic value can be determined using the constant dividend growth model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
Stock A = $5/ (0.11 - 0.1) = $500
Stock B = $5/ (0.2 - 0.1) = 50
Intrinsic value of A is greater than that of B
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:
Direct materials used $ 88,000
Direct labor used $ 161,800
Predetermined overhead rate (based on direct labor) 140 %
Goods transferred to finished goods $ 445,000
Cost of goods sold $ 457,000
Credit sales $ 833,400
A. Debit Accounts Receivable $833,400; credit Cost of Goods Sold $833,400.
B. Debit Accounts Receivable $833,400; credit Sales $376,400; credit Finished Goods Inventory $457,000.
C. Debit Cost of Goods Sold $457,000; credit Sales $457,000.
D. Debit Finished Goods Inventory $457,000; debit Sales $833,400; credit Accounts Receivable $833,400; credit Cost of Goods Sold $457,000.
E. Debit Accounts Receivable $833,400; credit Sales $833,400; debit Cost of Goods Sold $457,000; credit Finished Goods Inventory $457,000.
Answer:
E. Debit Accounts Receivable $833,400; credit Sales $833,400; debit Cost of Goods Sold $457,000; credit Finished Goods Inventory $457,000.
Explanation:
Based on the information given we were told that the Cost of goods sold was the amount of $ 457,000 while the Credit sales was the amount of $ 833,400 which means that the appropiate journal entry to record June sales is:
Debit Accounts Receivable $833,400
Credit Sales $833,400
(To record sales)
Debit Cost of Goods Sold $457,000
Credit Finished Goods Inventory $457,000
(To record sales)
Two countries trade with each other regularly. Country A has a strong economy and buys large quantities of natural resources from country Beach
year. Country B has a weaker economy, and $1 in country A's currency is
worth about $50 in country B's currency.
Which result would be most likely if the exchange rate suddenly became $1 in
country A's money for $75 in country B's money?
A. Country A would be forced to adopt a flexible exchange rate.
B. Country B would receive more value for its exported materials.
C. Country B would be forced to adopt a fixed exchange rate.
D. Country A would receive more value for its imported materials
Answer: B
Explanation: a p e x
The result would be most likely if the exchange rate suddenly became $1 in country A's money for $75 in country B's money, are Country B would receive more value for its exported materials. Thus, the option (b) is correct.
What is trade?
Trade is a term used to describe economic activities. Trade is the term used to describe the purchasing and selling of goods and services. Trade can take many various forms, including both domestic and international trade. Trading in financial terms refers to the buying and selling of securities or other assets.
Comparing the economies of the two nations, Country A has a stronger economy than Country B. Natural resources form the basis of both countries' trade systems. The countries' respective exchange rates are $1 in country A's currency and $75 in country B's currency. The material exported to country B would be more well received.
Therefore, option (b) is correct.
Learn more about on trade, here:
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Park Place Company reported cost of goods sold of $140,000 for the year 2020. Park Place also reported the following amounts on its balance sheets. Jan. 1, 2020Dec. 31, 2020 Inventory$25,000$27,500 Accounts payable15,00014,500 What amount would be reported as cash paid to suppliers in the operating activities section of the statement of cash flows using the direct method
Answer:
the cash paid to supplier is $143,000
Explanation:
The computation of the cash paid to the supplier is given below;
Purchases = Ending inventory + cost of goods sold - beginning inventory
= $27,500 + $140,000 - $25,000
= $142,500
Now the Cash paid to supplier is
= Beginning account payable + purchases - ending account payable
= $15,000 + $142,500 - $14,500
= $143,000
hence the cash paid to supplier is $143,000
Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 4% of sales. Assume that sales were $280,000 for January. On February 7, a customer received warranty repairs requiring $180 of parts and $105 of labor.a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. b. Journalize the entry to record the warranty work provided in February.
Answer:
Explanation:
a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty.
Debit: Product Warranty expense Account = $280,000 × 4% = $11200
Credit Product Warranty payable = $11200
b. Journalize the entry to record the warranty work provided in February.
Debit Product warranty payable Account $285
Credit Supplies account $180
Credit Wages payable account $105
Wilson sells software during the recruiting seasons. During the current year, 10,000 software packages were sold resulting in $470,000 of sales revenue, $130,000 of variable costs, and $48,000 of fixed costs. If sales increase by $80,000, operating income will increase by ________. (Round interim calculations to two decimal places and the final answer to the nearest whole dollar.) Group of answer choices $48,000 $57,872 $32,000
Answer:
$57,872
Explanation:
Calculation to determine what the operating income will increase by
Price = $470,000 / 10,000
Price= $47.00
Sales in software packages = $80,000 / $47.00 Sales in software packages= 1,702.13 software packages
Operating income increase = 1,702.13 × $34.00 per
Operating income increase = $57,872
Therefore the operating income will increase by
$57,872
Cliff's Candy produces and sells boxes of chocolates. When Cliff produces and sells his profit-maximizing quantity of 1,000 boxes, the average total cost is $3.00. If Cliff were to produce 1,100 boxes, the average total cost would be $2.50. Which of the following inefficiencies of monopolistically competitive markets is described in this scenario?
a. Product-variety externality
b. Business-stealing externality
c. Markup over marginal cost
d. Excess capacity
Answer:
D
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
The product-variety externality: When new firms enter into an industry, competition drives price down. This increases consumer surplus. As a result, entry of firms into an industry results in a positive externality on consumers.
The business-stealing externality: When a new firm enters into an industry, existing firms lose customers and profits fall. As a result, entry of a new firm results in a negative externality on existing firms.
Markup over marginal cost is the extent of which price exceeds marginal cost
Excess capacity is when a firm is producing at a capacity that is less than what it is designed for. Excess capacity is evidenced when upon increasing output, average cost falls.
According to Value Line, Bestway has a beta of 1.15. If 3-month Treasury bills currently yield 7.9% and the market risk premium is estimated to be 8.3%, what is Bestway's cost of equity capital?
a. 16.2%
b. 9.55%
c. 8.36%
d. 17.45%
Answer:i think its b
Explanation:
Buffalo BBQ Restaurant is trying to become more efficient in training its chefs. It is experimenting with two training programs aimed at this objective. Both programs have basic and advanced training modules. The restaurant has provided the following data regarding the two programs after two weeks of implementation:
Training Program A Training Program B
New chef # 1 2 3 4 5 6 7 8 9 10
Hours of basic training 22 24 28 21 23 25 24 29 31 28
Hours of advanced training 8 7 8 10 11 4 3 0 1 2
Number of chef mistakes 12 13 15 14 14 7 6 8 5 6
a. Compute the following performance metrics for each program:
(1) Average hours of employee training per chef, rounded to one decimal place.
(2) Average number of mistakes per chef, rounded to one decimal place.
b. Which program should the restaurant implement moving forward?
Answer: See explanation
Explanation:
(1) Average hours of employee training per chef.
Program A:
Hours of basic training = 22 + 24 + 28 + 21 + 23 = 118
Hours of advanced training = 8 + 7 + 8 + 10 + 11 = 44
Total hours of training = 118 + 44 = 162
Number of chefs in A = 5
Average hours of employee training per chef in A = 162/5 = 32.4
Average hours of employee training per chef for Program B
Hours of basic training = 25 + 24 + 29 + 31 + 28 = 137
Hours of advanced training = 4 + 3 + 0 + 1 + 2 = 10
Total hours of training = 137 + 10 = 147
Number of chefs in B = 5
Average hours of employee training per chef in B = 147/5 = 29.4
(2) Average number of mistakes per chef for Program A:
Number of chefs mistake = 12 + 13 + 15 + 14 + 14 = 68
Number of chefs = 5
Average number of mistakes per chef for Program A: = 68/5 = 13.6
Average number of mistakes per chef for Program B
Number of chefs mistake = 7 + 6 + 8 + 5 + 6 = 32
Number of chefs = 5
Average number of mistakes per chef for Program B: = 32/5 = 6.4
b. Which program should the restaurant implement moving forward?
The restaurant should Implement program B because less training is required and less mistakes are made.
Accents Associates sells only one product, with a current selling price of $130 per unit. Variable costs are 60% of this selling price, and fixed costs are $40,000 per month. Management has decided to reduce the selling price to $125 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price. At the current selling price of $130 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $20,000
Answer:
Break-even point (dollars)= $150,000
Explanation:
Giving the following information:
Selling price= $130
Unitary variable cost= 130*0.6= $78
Fixed costs= $40,000
Desired profit= $20,000
To calculate the sales in dollars to reach the desired profit, we need to use the following formula:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (20,000 + 40,000) / [(130 - 78) / 130]
Break-even point (dollars)= 60,000 / 0.4
Break-even point (dollars)= $150,000
The roles of money
Alex just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price. Identify what role money plays in each of the following parts of the story. (Medium of exchange, unit of account, or store of value)
A. Sean writes a check for $4,000.
B. Sean can easily determine that the price of the Super is more than the price of the Duper.
C. Sean has saved $4,000 in his checking account.
Answer:
Medium of exchange
unit of account
store of value
Explanation:
Money is anything that is generally accepted as a means of payment for goods and services and for repayment of debt.
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, by writing the check, he is exchanging money for a car
2. Unit of account : money can be used to value goods and services, For example, price was used to determine which was more expensive between the super and the duper
3. Store of value : money can retain its value over the long term, this it can be used as a store of value.
A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable pro- duction costs of $2 million at 100 percent capacity and fixed costs of $700,000. What is the fixed cost per kilogram at the breakeven point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35 percent of gross earnings?
Answer:
a. Breakeven point = Fixed cost / Contribution margin
Contribution margin = Selling price - Variable costs per unit
Variable cost per unit = 2,000,000 / (5,000 * 365 days)
= $1.10
Contribution margin = 1.75 - 1.10
= $0.65
Breakeven point = 700,000 / 0.65
= 1,076,923 kg
Fixed cost per kilogram at those units is:
= 700,000 / 1,076,923
= $0.65
_________________________________________________________
b. Net profit at original prices:
= (Contribution margin * units produced) - Fixed costs
= (0.65 * 5,000 * 365) - 700,000
= $486,250
Less taxes:
= 486,250 * (1 - 35%)
= $316,062.50
Net profit after price increase:
New selling price = 1.75 * 1.1
= $1.93
Net profit = ((Selling price - Variable cost) * units sold) - fixed cost
= ( (1.93 - 1.10) * 5,000 * 365) - 700,000
= $814,750
After tax:
= 814,750 * (1 - 35%)
= $529,587.50
Dollar increase:
= 529,587.50 - 316,062.50
= $213,525
Jason, Ellen and Frank are business partners. Each of them handles a separate area of the partnership's business. They periodically have partners' meeting where they report to each other on the financial status of their areas and discuss potential new business. Jason's area of business has recently become extremely profitable, and Ellen and Frank are so happy with the new financials that they have not closely questioned Jason about the details especially since the partners continue to receive an equal share of the business profits each of them brings in. Ellen and Frank are shocked when the FBI comes to the office one Friday afternoon and arrest Jason. The FBI also informs Ellen and Frank that the office equipment is being seized and the partnership bank accounts have been frozen. Which of the following is a correct statement of the law?
a. Both Ellen and Frank can face criminal prosecution because the business was operated as a partnership.
b. Ellen and Frank will not be liable for Frank's conduct because Frank independently operated his area of the business.
c. Ellen and Frank should immediately file a Notice of Dissociation so that they will not be liable for Jason's conduct.
d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.
Answer:
d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.
Explanation:
Because Ellen and frank are partners with Jason, they would also both be liable for Franks conduct because the three of them are business partners and have shared profits equally in Jasons area of the business without paying attention to details about the source of the profit. This would make it seem like they were in agreement and accomplices with Jason.
Roberto has received various gifts over the years and has decided to dispose of the following assets he received as gifts:
What is the recognized gain or loss from the following transactions, assuming that no gift tax was paid when the gifts were made.
If an answer is zero, select "neither a gain nor a loss" and enter "0" as the amount.
a. In 1981, he received land worth $32,000. The donor's adjusted basis was $35,000. Roberto sells the land for $95,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
b. In 1986, he received stock in Gold Company. The donor's adjusted basis was $19,000. The fair market value on the date of the gift was $34,000. Roberto sells the stock for $40,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
c. In 1992, he received land worth $15,000. The donor's adjusted basis was $20,000. Roberto sells the land for $9,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
d. In 2013, he received stock worth $30,000. The donor's adjusted basis was $42,000. Roberto sells the stock for $38,000 in 2018.
(neither a gain or a loss/ a gain/ a loss) of $__________ is recognized.
Answer: See explanation
Explanation:
a. The recognized gain or loss from the transaction will be:
= Amount realized - Adjusted basis
= $95000 - $35000
= $60000
Gain of $60000 will be recognized
b. The recognized gain or loss from the transaction will be:
= Amount realized - Adjusted basis
= $40000 - $19000
= $21000
Gain of $21000 is recognized
c. The recognized gain or loss from the transaction will be:
= Amount realized - Adjusted basis
= $9000 - $15000
= -$6000
Loss of $6000 is recognized
d. In this case, no gain or loss will be recognized.
Sheffield Corp. had accounts receivable of $250,000 on January 1, 2019. The only transactions that affected accounts receivable during 2019 were net credit sales of $5,225,000, cash collections of $5,155,000, and accounts written off of $20,000.
Answer:
300000is the answer make me branlist
5. Joseph transfers $1000 from his money market fund to his checking account. This
transaction will:
a) decrease M2 and increase M1.
b) increase M1, but leave M2 unchanged.
c) decrease M1 and increase M2.
d) decrease both M1 and M2.
Answer:
A. decrease M2 and increase M1
Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle will cost $28,500, and Harold expects to spend about $700 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $11,300. Alternatively, Harold could lease the same vehicle for five years at a cost of $3,705 per year, including maintenance. Assume a discount rate of 10 percent.
Requirement:
1. Calculate the net present value of Harold’s options. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answers to 2 decimal places.
2. Advise Harold about which option he should choose.
Lease Option
Purchase Option
Answer:
$-24,137.14
$-14,044.86
He should choose the lease option
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Purchase option
Cash flow in year 0 = $-28,500
Cash flow in year 1 - 4 = -700
Cash flow in year 2 = 11,300 - 700 = 10,600
I = 10%
NPV= -24,137.14
Lease option
Cash flow in year 1 - 5 = 3705
I = 10%
NPV= -14,044.86
the lease option is less expensive and should be chosen
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Select the correct answer.
At the end of the year, Clean123 Inc. has a service revenue of $193,750, an accounts payable of $500, a notes payable of $ 17,800, a salaries
expense of $26,900, and a rent expense of $14,640. What is Clean123 Inc.'s net income?
ОА.
$134,410
OB.
$152,210
OC. $161,310
OD. $166,850
Reset
Next
Answer: $152,210
Explanation:
The net income is the income that remains after the expenses has been deducted from the revenue.
Clean123 Inc.'s net income will be calculated as:
Service revenue = $193,750
Less: Salaries expense = $26,900
Less: rent expense = $14,640.
Net income = $152,210
Therefore, the net income is $152210
Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the operations of Delaware Company. The following information pertains to the exchange.
Santana Co. | Delaware Co.
Equipment (cost) $28,000 | $18,000
Accumulated depreciation 9,000 | 10,000
Fair value of equipment 14,000 | 16,000
Cash given up 2,000
Please indicate whether an account is an asset (A), liability (L), or equity (E) for journal entries, adjusting entries, and closing entries.
Prepare the journal entries to record the exchange on the book of Santana Co. and Delaware Co. Assume that the exchange lacks commercial substance.
Solution :
We know that the exchange takes place when the FMV receive is equal to the FMV given up.
Where the FMV = fair market value
The commercial substance means the future cash flows exchange.
The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.
The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :
Transaction Debit ($) Credit ($)
Asset(new) 11,000
Accumulated depreciation(old) 9,000
Asset (old) 28,000
Cash 2000
The journal entries for Delaware Corp. when the exchange lacks the commercial substance.
Transaction Debit ($) Credit ($)
Asset(new) 16,000
Accumulated depreciation (old) 10,000
Loss 2500
Assets (old) 28,000
Tamarisk, Inc. is authorized to issue 2,250,000 shares of $1 par value common stock. During 2020, the company has the following stock transactions.
Jan. 15 Issued 880,000 shares of stock at $7 per share.
Sept. 5 Purchased 28,000 shares of common stock for the treasury at $8 per share.
Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December 20, payable January 3, 2021.
Journalize the transactions for Tamarisk, Inc.
Answer:
Date Account Titles and Explanation Debit$ Credit$
Jan.15 Cash (880,000*$7) 6,160,000
Common Stock , $1 Par value 880,000
Paid in capital in excess of par value 5,280,000
Sept.5 Treasury Stock 224,000
Cash (28,000*8) 224,000
Dec.6 Retained earnings 440,000
Cash Dividend Payable 440,000
(880,000*0.50)
What is the amount that a customer owes on a credit card at the end of the month called?
Answer:
last payment
Explanation:
i hope thats right
Answer:
Last payment :)
Explanation:
good research should ideally be...
Answer:
What constitutes a good research question?
A good research question requires original data, synthesis of multiple sources, interpretation and/or argument to provide an answer. The answer to the question should not just be a simple statement of fact: there needs to be space for you to discuss and interpret what you found.
Explanation:
Onini, Inc. produces one product with two production levels: 20,000 units and 80,000 units. At each production level, Onini's per-unit costs for Costs A, B, and C are:
Cost A (per unit) Cost B (per unit) Cost C (per unit)
Production = 20,000 $12.00 $15.00
$20.00
Production = 80,000 $12.00 $11.25
$5.00
What type of cost is each?
A. Cost A is variable, Cost B is mixed, and Cost C is fixed.
B. Cost A is fixed, Cost B is variable, and Cost C is mixed
C. Cost A s variable, Cost B is fixed, and Cost C is mixed.
D. Cost A is fixed, Cost B is mixed, and Cost C is variable.
Answer:
A
Explanation:
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Total fixed cost = 20,000 x 20 = 400,000
80,000 x 5 = 400,000
c is fixed cost
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Variable cost is constant per unit produced. Thus A, is variable cost
Mixed cost is cost that combines fixed cost and variable cost