Suppose you have purchased a non-refundable plane ticket and, at the last moment, you cannot take the trip. You can, however, sell the ticket. If you paid $700 for the ticket, the cost of sending the ticket to someone through overnight mail is $20, and you spend $10 on a courier to get the ticket to the post office for overnight delivery, what is the minimum you should accept for the ticket?
a) $700 because that is what the ticket cost.
b) $720 because that is the cost of the ticket and of getting it to the buyer.
c) $730 because that is the total cost of the ticket and getting it to the buyer.
d) More than $730, so that you can make a profit.
e) $30 because the $700 is a sunk cost.

Answers

Answer 1

Answer:

E) $30 because the $700 is a sunk cost.

Explanation:

The price of ticket is now a sunk cost, i.e. $700 and only minimum amount that can be earned and accepted is $30.

Sunk cost is an irreversible cost that is incurred because of faulty decision or less accurate forecast by companies or individuals, or even normal costs that is spent becomes a thing of past.

Usually decision makers choose not to spend more money on projects that incur more sunk costs and try to compensate that by making new ways. Sunk costs are like fires shot from a gun; you cannot recover them by any means.

So, $700 is now a sunk cost which couldn’t be brought back.

Answer 2

Final answer:

The minimum amount to accept for the ticket is $730, accounting for the purchase price and the additional mailing and courier expenses, with the initial ticket cost considered a sunk cost. Option C is correct.

Explanation:

The minimum amount you should accept for the ticket is $730. This is because the initial cost of the ticket ($700) plus the overnight mailing costs ($20), and the courier cost ($10) should be recovered even though you cannot make the trip. This total amount represents the minimum price to break even on your expenses. Remember, the $700 is considered a sunk cost, and the rational decision would be to focus on recovering the additional expenses associated with delivering the ticket to a new buyer. Option C is correct.


Related Questions

Which of the following statements is correct?a.An advantage of the corporate form for many businesses is the fact the corporate tax rate always exceeds the personal tax rate, which is the rate at which proprietorships and partnerships are taxed.b.Because corporations enjoy the benefits of limited liability, easy transferability of ownership interest, unlimited life, and favorable tax status relative to the situation for partnerships and proprietorships, most large businesses choose to incorporate.c.Because lawyers have the incorporation process so automated (e.g., word processors for drawing up the necessary papers), it is less expensive to form a corporation than to form a proprietorship or partnership.d.There are more partnerships and sole proprietorships than corporations in the U.S., but corporations produce more goods and services than do other forms of business.e.A major disadvantage of a regular partnership or a corporation as a form of business is the fact that they do not offer their owners limited liability, whereas proprietorships do.

Answers

Answer:

C. There are more partnerships and sole proprietorships than corporations in the U.S., but corporations produce more goods and services than do other forms of business.

Explanation:

The reason of this is the complexity of the process.

In general , forming partnership and sole proprietorship have lesser requirements than forming a corporation. So  most business owner choose these based on convenience purposes.

That's being said, it is far easier for corporations to gather capital for their operation. They can do it by selling stocks /part ownership of their company. Larger capital means hat corporations will have more money to buy things such as materials and machinery. This is why corporations produce more goods and services than do other forms of business.

The correct answer is that there are more partnerships and sole proprietorships than corporations in the U.S., but corporations produce more goods and services. The key benefits of corporations, such as limited liability and ease of raising capital, make them well-suited for large-scale business despite the higher costs and regulatory complexity involved.

The correct statement is that there are more partnerships and sole proprietorships than corporations in the U.S., but corporations produce more goods and services than do other forms of business. This is due to the unique benefits corporations provide, such as limited liability, potential for easy transferability of ownership, unlimited life, and the ability to raise capital more efficiently. However, incorporating a business involves more complexity and cost compared to forming a sole proprietorship or partnership, which is why many small businesses may opt for simpler organizational structures. Corporations also face a double taxation issue, where the income is taxed at the corporate level and dividends distributed to shareholders are taxed again at the personal level. Despite this, the limited liability feature significantly lowers the financial risk for shareholders, making corporations an attractive option for large businesses.

Hence, the correct option is (d).

Tale Tel is a mobile network operator. To increase its market share, the company installed many booths around Linway city to provide information to the general public about the features of its services. In this scenario, Tale Tel is focusing on the _____ element of the marketing mix.

a. production
b. pricing
c. distribution
d. promotio

Answers

Answer:

D.Promotion.

Explanation:

the correct answer is option d. Tale Tel is focusing on the promotion element of the marketing mix by installing booths to inform the public about its services and increase market share.

In the given scenario, Tale Tel is focusing on the promotion element of the marketing mix.

Promotion involves informing potential customers about the services and persuading them to make a purchase. By installing booths around Linway city to provide information to the public, Tale Tel is engaging in promotional activities to increase its market share. This element of the marketing mix is crucial as it ensures that the target audience is well aware of the product features and benefits

4. Which of the following is not an accurate statement about the debt problem in
LDCs?
A In some countries, debt is greater than GDP.
O
B
The rise in value of the U.S. dollar caused a rise in debt.
O
C
Debt holders often seize government property when loans are not
repaid.
O
D
A rapid increase in the price of oil caused a great rise in debt.

Answers

Answer:

The correct answer is C

Explanation:

The problem of debt in LDC, in the medium or even long term, the source of the future credit for the imports of the capital goods and such credit has been intrinsic to the fast as well as rapid growth in a economic manner and their demand for the exports from the world of the industralized.

So, the one statement which is not correct is that the debt holders usually seize the government property, if the loans are not repaid.

Firms that practice value-based marketing typically use a process known as ______, which includes a set of strategies, programs, and systems that focus on building loyalty among the firm's most valued customers.

Answers

Answer:

customer relationship management

Explanation:

Companies that successfully implement customer relationship management (CRM) should be able to customize the services and products that they offer to their customers. The company should be able to develop a good relationship with its customers and increase the exchange of information and feedback. This can help the company provide customized services that better satisfy the needs and wants of its customers.

After many years of doing his laundry at a public laundromat, Brett was glad to move into an apartment with washer and dryer hookups. he planned to buy a washer and dryer to save time and money. Which of the following needs would the purchase satisfy?utilitarian needs T/F

Answers

Answer:

I believe the question is asking for a T/F answer.

The answer is T (True)

Explanation:

Under the "Utilitarian consumption," a utilitarian need is something that is functional to a person.

Purchasing the washer and the dryer is a very practical option, since Brett has been doing his laundry at the laundromat for many years. If he buys the washer and dryer, he'd be able to save more time and money so this means that the purchase is practical and a necessity for him. This will satisfy his utilitarian need.

The utilitarian need is an opposite to the "Hedonic consumption" wherein the hedonic need allows the person to purchase products that are thrilling and fun.

Thus, this explains the answer.

Tabby Tolman is a project coordinator at Tristar Solutions. Whenever a new project comes her way, she holds a project meeting and follows it up with repeated meetings to address any concerns the team members may have and to monitor their progress. However, with the peak of the business season arriving, she has been holding just one project initiation meeting for every project to save on time. She has become increasingly worried about the team's progress with no inputs coming from the members, and she has had no time to check with them. With two weeks left to go for a high priority project of a month's duration, she has now begun to see some work coming through and is relieved. This development reflects that the group is at the stage of:

Answers

Options:

A) forming

B) inertia following the first meeting

C) second phase of inertia before the group's last meeting

D) storming

E) transition following the halfway mark in the timeline

Answer:

E) transition following the halfway mark in the timeline

Explanation:

Tabby already formed the groups or teams that are going to be in charge of carrying out the organization's different projects, and they already started their work. Even though she is not part of any team, she must supervise them and is feeling really anxious because the number of new projects and she hasn't received information about existing projects.

Transition means change, and the Tabby is expecting change, since she knows that the individual projects must already be in their way or about to be finished. Apparently the business that Tabby's organization handles have a short life, since a one month long project is considered very long. She is expecting results.

The correct statement is that the development in such a group reflects that the group is at the stage of a transition following the halfway mark in the timeline. So, the correct option is E.

Generally, these kinds of situations happen with businesses having less manpower during the peak season of the business they are involved in which are easily able to rectified.

Tabby Tolman can follow a few steps to increase the efficiency of Tristar Solutions performing at the position of a project coordinator during their peak season.

The business can start hiring additional employees on a temporary basis so that there are additional manpower and resources available at the time of peak season.

Additionally, she can divide her teams in to different groups and order the leader of each group to report to her so that the work is also properly managed halfway mark in the timeline.

Hence, the correct option is E that the developments that reflects about the group being at a transition following a halfway mark in the timeline.

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The production plant for Ace Manufacturing has been located in the same place for over 100 years. It has just completed its new factory, which includes its new corporate offices. The planning required for moving Ace into a new facility is a single-use plan. (True/False)
TRUE OR FALSE

Answers

Answer:

True

Explanation:

A single use plan is basically a one time business transaction that is supposed to take place only once and should not be repeated in the future.  In this case, the production plant has been used for more than 100 years, but once it is sold, its history and the company should no longer have any type of relationship with it.

Luke and Carol are two toymakers who both produce trains and cars. In one month, Luke can produce 5 trains or 20 cars, whereas Carol can produce 8 trains or 24 cars. Given this, we know that

Answers

Answer:

Carol has an absolute advantage in cars.

Explanation:

Coercive Acts Committees of Correspondence direct tax Indirect tax A. colonial extralegal shadow governments that convened to coordinate plans of resistance against the British B. Set of 4--passed by Lord North to punish Massachusetts for destroying the tea and refusing to pay for the damage C. imposed on businesses rather than directly on consumers D. consumers pay to an entity rather than through merchants' higher prices 4 points

Answers

Answer:

I believe that two different questions have been mixed into one:

Coercive acts:

B) Set of 4 ACTS passed by Lord North to punish Massachusetts for destroying the tea and refusing to pay for the damage: THEY INCLUDED ADMINISTRATION OF JUSTICE ACT, MASSACHUSETTS GOVERNMENT ACT, PORT BILL AND THE QUARTERING ACT

Committees of Correspondence:

A) colonial extralegal shadow governments that convened to coordinate plans of resistance against the British

Explanation:

Massachusetts was the only colony that elected their own leaders since its charter allowed them more freedom than any other colony. After the Boston Tea Party, the British parliament decided to punish Massachusetts by sending their own governor and establishes severe penalties and laws. In a practical sense, the governor only ruled in Boston because the British were there, but the rest of Massachusetts remained extremely pro-independence and basically ruled itself as it had before.

Maurice, the marketing head of a nonprofit organization, always begins his presentation on a project by sharing a lesser-known fact about the issue that the project focuses on. This helps the members of the audience get a better picture of the importance of the issue and makes them more attentive. Given this information, it can be assumed that Maurice uses ________ to open his presentations.

Answers

Answer:

Maurice, the marketing head of a nonprofit organization, always begins his presentation on a project by sharing a lesser-known fact about the issue that the project focuses on. This helps the members of the audience get a better picture of the importance of the issue and makes them more attentive. Given this information, it can be assumed that Maurice uses persuasive means to open his presentations.

Explanation:

From the above analogy, it is a known fact that Maurice used persuasive presentation by presenting facts to support his claims in order to allow his audience to agree with his presentation.

In an underwritten arrangement, the investment banker assures the company that is issuing new securities that the entire issue will be sold, which means the investment banker bears significant risks in such an offering.True / False.

Answers

Answer:

True

Explanation:

Underwritten agreement is a contract between an underwriter and issue of shares.

The firm commitment contract is where the underwriter assures the issuer the shares will be sold at an agreed price. This is safest for the issuer as the underwriter bears the risk of selling all the shares.

Underwritten agreement states the price, settlement date, and initial resale price.

The account title used for recording a written promise that a customer will pay the business a fixed amount of money and interest by a certain date in the future is​ ________.A.Notes PayableB.Prepaid NoteC.Notes ReceivableD.Accounts Receivable

Answers

Answer:

A.Notes Payable

Explanation:

Notes Payable refers to a liability wherein a party signs a promissory note or an agreement in writing, agreeing to pay a certain amount of money coupled with interest on a certain future date.

A note payable specifies details such as the amount of money to be paid, the rate of interest applicable, maturity date, signature of the issuer etc.

The journal entry for issuing notes payable when an amount is payable to a supplier would be;

Accounts Payable                                               Dr

     To Notes Payable A/C

(Being notes payable recorded)

After completing the closing entries for Revenues and Expenses, the Income Summary account has a credit balance of $1,500. The journal entry to close out the $1,500 credit balance of Income Summary would be:_______.

Answers

Answer:

                                             Debit             Credit

Income Summary               $1,500

Retained Earning                                       $1,500

Credit Balance of income Summary account will be closed by a debit entry in this account. Transfer the balance to retained earning by credit entry to this account.

Final answer:

To close out a $1,500 credit balance in Income Summary, you would debit Income Summary and credit Retained Earnings or Owner's Equity for $1,500.

Explanation:

After completing the closing entries for Revenues and Expenses, if the Income Summary account has a credit balance of $1,500, the journal entry to close out this balance would be to debit the Income Summary account and credit the Retained Earnings account (for a corporation) or the Owner's Equity account (for a sole proprietorship) by the same amount. This action transfers the net income, or loss if the balance were a debit, into the appropriate equity account.

The journal entry would look like this:

Debit Income Summary $1,500

Credit Retained Earnings/Owner's Equity $1,500

Suppose that Criminal Carl breaks into Vince Victim's house, steals the TV and does terrible damage to the property. However, when the police tell Vince they have footage of Carl committing the crime, Vince no longer wants to press charges because he and Carl were friends when they were children. 8. If Vince does not want to bring an action against Carl, what will happen to the civil case? There will be no civil case The government will bring the civil case against Carl Carl will be forced to testify 9. If Vince does not want to bring an action against Carl, what will happen to the criminal case? There will be no criminal case The case will be remanded The government may decide to bring a criminal case against Carl. 10. True or false: A defendant can still go to jail even if a victim does not want to go forward with a case.

Answers

Answer:

8) In civil court, one person - "plaintiff" files a lawsuit against another person "defendant" because of a dispute or problem between them. If the defendant loses the case, the person may be ordered to pay money to the plaintiff or return the stolen property like in the case of Carl and Vince, but the defendant does not go to jail just for losing the case.      

 If Vince does not want to bring action against Carl, the civil case would therefore be dropped.

9) If Vince does not want to bring an action against Carl, there would be no criminal case against Carl from Vince but the criminal case may be brought on by the government (note that the police already have evidence in the form of a footage of Carl committing the crime) and in this case if found guilty, then Carl may go to jail or prison.

10) A defendant can still go to jail even if a victim does not want to go forward with a case - True.

Like in this case for instance the Prosecutor can present other evidence that show the theft occurred such as the footage and if Carl is found guilty “beyond a reasonable doubt” which is a very high standard, then he can be sentenced to jail

Explanation:

The answer to question 8 is: There will be no civil case.

The answer to question 9 is: The government may decide to bring a criminal case against Carl.

The answer to question 10 is: True.

In the legal system, a civil case is a private dispute between individuals or organizations. If Vince Victim, the plaintiff, decides not to pursue a civil case against Criminal Carl, then there is no one to bring the case to court. Civil cases are initiated by the party that has suffered harm or loss, and if that party chooses not to seek legal remedy, the case cannot proceed. Therefore, if Vince does not want to bring an action against Carl, there will be no civil case.

  Criminal cases are different from civil cases in that they are brought by the government on behalf of the people, not by the individual victim. The decision to prosecute a criminal case lies with the government prosecutors, not with the victim. Even if Vince Victim does not want to press charges, the government can still decide to prosecute Carl based on the evidence, such as the footage of the crime. The government's role is to enforce the law and protect the public interest, so it may choose to proceed with a criminal case against Carl regardless of Vince's wishes.

 It is true that a defendant can still go to jail even if the victim does not want to go forward with the case. This is because criminal cases are a matter of public interest, and the decision to prosecute lies with the government, not the victim. The government's role is to uphold the law and ensure that justice is served, which can include sending a defendant to jail if they are found guilty of a crime. The victim's desire not to participate in the case does not necessarily absolve the defendant of criminal liability. The prosecution can use other evidence to pursue the case, and if the defendant is found guilty beyond a reasonable doubt, they can be sentenced to jail time."

When Maria, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton, she was exhausted and her suit was wrinkled from her 10-hour plane trip. The night clerk found someone to dry clean Maria's suit and have it ready for her morning presentation. She has been a loyal Ritz-Carlton customer ever since. In this example, Ritz-Carlton demonstrated the macro strategy of

Answers

Answer:

customer excellence

Explanation:

The night clerk is not in charge of looking for dry cleaners, he is not Maria's personal assistant nor does he own or operate a dry cleaning service. So the fact that he did more than his job requires him to do, exemplifies how Ritz-Carlton's employees are committed to providing excellent customer service. That small extra effort can really make a difference.

Suppose that the rise in the price of coffee beans resulted in a large decrease in the supply of Starbucks coffee while the lower prices by its competitor resulted in only a small decrease in demand. The net impact would be a:________.

Answers

Answer:

A price that is higher and lower quantity of Starbucks coffee

Explanation:

There was only a small decrease in demand for Starbucks coffee, and demand has been greatly decreased.

The demand for Starbucks coffee will remain high, supply will be limited and this will push the price high due to scarcity of the coffee.

Final answer:

The rise in the price of coffee beans and a decrease in demand results in a significant decrease in Starbucks coffee supply and a small decrease in demand. This leads to a reduced equilibrium quantity, while the impact on the equilibrium price is ambiguous and dependent on the relative shifts in supply and demand curves.

Explanation:

When we examine the impact of price changes on supply and demand for Starbucks coffee, we need to consider how both shifts in the supply curve and demand curve can affect the market equilibrium. A rise in the price of coffee beans leads to a decrease in supply as the cost of production increases, and this can be shown by a leftward shift in the supply curve. Conversely, a smaller decrease in demand from competitors' lower prices would yield a small leftward shift in the demand curve. When both supply and demand decrease, this simultaneously causes the equilibrium quantity of coffee to fall. However, the net impact on the equilibrium price is uncertain and depends on the relative magnitudes of the shifts in supply and demand curves.

For instance, if the supply curve shifts more than the demand curve, the equilibrium price would likely rise. But if the demand curve shifts more significantly than the supply curve, the equilibrium price could decrease. If both curves shift by equal amounts, the equilibrium price may remain unchanged. Given the more considerable decrease in Starbucks coffee supply and a smaller decrease in demand, the net impact would likely be a reduction in the equilibrium quantity and an ambiguous change in the equilibrium price.

Chandler Sporting Goods produces baseball and football equipment and lines of clothing. This year the company had cash and marketable securities worth $335,485, accounts payables worth $1,159,357, inventory of $1,651,599, accounts receivables of $1,488,121, short-term notes payable worth $313,663, and other current assets of $121,427. What is the company's net working capital?

Answers

Answer:

The company's net working capital is $2123612

Explanation:

Working Capital

Current Assets:

Cash & marketable securities worth  $335,485

Inventory of                                          $1,651,599

Accounts receivables                          $1,488,121

Other current assets                            $121,427

Total Current Asset                                                     $3,596,632

Less:

Current Liabilities:

Accounts payable worth                       $1,159,357

Short-term notes payable worth           $313,663

Total Current Liabilities                                               $1,473,020

Net Working Capital                                                    $2,123,612

Final answer:

Chandler Sporting Goods' net working capital is calculated by subtracting the total current liabilities ($1,473,020) from the total current assets ($3,596,632), resulting in a net working capital of $2,123,612.

Explanation:

To calculate Chandler Sporting Goods' net working capital, we need to first identify the company's current assets and current liabilities:

Current Assets include cash and marketable securities ($335,485), inventory ($1,651,599), accounts receivables ($1,488,121), and other current assets ($121,427).Current Liabilities include accounts payables ($1,159,357) and short-term notes payable ($313,663).

Next, we calculate the totals for current assets and current liabilities:

Total Current Assets = $335,485 (cash) + $1,651,599 (inventory) + $1,488,121 (receivables) + $121,427 (other assets) = $3,596,632Total Current Liabilities = $1,159,357 (payables) + $313,663 (notes payable) = $1,473,020

Finally, we determine the net working capital by subtracting the total current liabilities from the total current assets:

Net Working Capital = Total Current Assets - Total Current Liabilities

Net Working Capital = $3,596,632 - $1,473,020 = $2,123,612.

The company's net working capital is $2,123,612, indicating the funds available in the short term to finance ongoing operations and invest in new opportunities.

In an effort to make better and more efficient purchase decisions, the Ford Motor Co. includes various people, depending on the purchase situation. Individuals may include key personnel from various departments, including research and development, finance, marketing, shipping, and sales. This is a description of Ford's________________________

Answers

Answer:

Buying Center.

Explanation:

A Buying Center is a group if individuals within an organization that are responsible for making purchase decisions.

The Buying Center is also called the Decision Making Unit (DMU), and it includes personnel from various departments.

Doris's Fashions has just signed a $2.2 million contract. The contract calls for a payment of $0.6 million today, $0.8 million one year from today, and $0.8 million two years from today. What is this contract worth today if the firm can earn 8.2 percent on its money

Answers

Answer:

$2.02 million

Explanation:

We need to calculate the present value of Doris's contract given the following three cash flows:

Year 0 $0.6 million

Year 1 $0.8 million

Year 2 $0.8 million

interest rate = 8.2%

present value (in million) = $0.06 + ($0.8 / 1.082) + ($0.8 / 1.082²) = $0.6 + $0.74 + $0.68 = $2.02 million

*present value formula = future value / (1 + r)ⁿ

The contract worth today is $2.02 million.

Calculation of the today worth of the contract:

We know that

present value formula = future value / (1 + r)ⁿ

So,

= $0.06 + ($0.8 / 1.082) + ($0.8 / 1.082²)

= $0.6 + $0.74 + $0.68

= $2.02 million

hence, we can conclude that The contract worth today is $2.02 million.

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Marcus wants to have the deed to his new home recorded to protect his ownership rights. In order to record the deed, it must be notarized. Marcus must go before a notary public and verify the signing of the deed. The notary then signs the deed. The verification of Marcus' signature in the signing of the deed is known as:

A. Autograph
B. Attestation
C. Recording
D. Caveat Emptor

Answers

Answer:

B. Attestation

Explanation:

Attestation is the legal acknowledgement and  verification of a document to ensure that due process  have been followed.  

It is the process of verification of documents to see if the basic requirements have been fulfilled and it all that is needed to be done, has been done

The verification of Marcus' signature in the signing of the deed is therefore known as attestation

​If, as Johnny's income decreases​, his demand for Upper T dash shirts increases​, then for Johnny​, Upper T dash shirts are ​_______.
a. an inferior good
b. a complement
c. a substitute
d. a normal good

Answers

Answer:

a. an inferior good

Explanation:

An inferior good is a good whose demand increases when income decreases and falls when income rises.

A normal good gas a positive relationship with income. Its demand increases when income rises and falls when income falls.

A substitute good is a good that can be used in place of another good.

A complement is a good that is demanded for together.

I hope my answer helps you

A period cost ________. a. is always expensed in the period in which it is incurred and NEVER becomes part of an inventory accountb. is the cost incurred by manufacturers to produce their products or incurred by merchandisers to purchase their products c. is a cost that can be traced to the cost object d. includes the cost of all resources used throughout the value chain Unselected I DON'T KNOW YET

Answers

Answer:

a. is always expensed in the period in which it is incurred and NEVER becomes part of an inventory account

Explanation:

Period cost is the cost that is incurred at the time passes. It also includes the major parts of the selling and administrative section of the income statement whether variable or fixed and it is neither capitalized also.

The examples of period cost is advertising expenses, delivery trucks depreciation, etc

So, it is never becomes part of an inventory account

Jim is CEO for a company that produces filing cabinets and office furniture. He uses when determining that in order to increase production by 20% next year, the company will need to hire 10 new employees.

Answers

Answer:

planning

Explanation:

Based on the information provided within the question it can be said that in this scenario Jim is using the function of planning in order to determine this. The planning management function focuses on thinking ahead in order to set things into motion so that everything functions accordingly and efficiently in the future. Which is what Jim is doing by stating that in order to increase the production by 20% like they need, they have to hire 10 new employees.

n​ 2007, an unseasonably dry spring led to a sharp decline in the quantity harvested of black​ morels, a wild mushroom found throughout the upper Midwest. Due to the scant​ harvest, the price of black morels rose from​ $9 per pound to nearly​ $45 per pound. In​ 2008, slightly aboveminusnormal rainfall levels led to a large black morel harvest. Assuming that the demand for black morels did not change from 2007 to​ 2008, we would expect the 2008 black morel supply to​ ________ and the equilibrium price of black morels to​

Answers

Answer:

Increase; fall

Explanation:

Due to the slightly above normal rainfall levels which led to a large black morel harvest, the supply of the commodity will increase.

However, since demand for the commodity is expected to remain the same as it was in 2007 despite the increase in supply, the equilibrium price is expected to fall as supply exceeds demand.

What is the difference in the future value of $100 at 7 percent interest for 5 years if the interest is compounded semiannually rather than annually?

Answers

Answer:

0.80

Explanation:

Compounded interest annually

[tex]I=P[(1+r)^n-1]\\I=100[(1+0.07)^5-1]\\\\I=100[1.40255173-1]\\I=100[.40255173]\\I=40.255173[/tex]

Compounded interest Semiannually

[tex]I=P[(1+r)^n-1]\\I=100[(1+0.035)^{10}-1]\\\\I=100[1.41059876-1]\\I=100[.41059876]\\I=41.059876[/tex]

Difference between interest = 41.059876 - 40.255173

Difference between interest = 0.804703

A multiple-step income statement is thought to be more beneficial to financial users because of the revelation of important relationships. Which of the following is not separately identified on a multiple-step income statement?

A. Gross profit
B. Net income
C. Income taxes
D. Total costs and expenses

Answers

Answer:

D. Total costs and expenses

Explanation:

As we know that

The income statement reports the total revenues earned and the total expenses incurred for a particular period.

In the case of the multi-step income statement, the gross profit, net income, income tax expense has a separately identified rather show it as total cost and expenses. It shows the various expenses like - selling and administrative expenses, cost of goods sold, etc

Many people who want to start investing for their future want to start today, which implies an annuity stream that is paid at the beginning of the period. Beginning-of-period cash flows are referred to as:_______.
a. ordinary annuities.
b. annuities due.
c. perpetuities.
d. present values.

Answers

Answer:

b. annuities due

Explanation:

Annuities due -

It refers to the amount which need to be paid at the regular interval of time , just before the beginning of the new phase , is referred to as annuities due .

The most common example of annuities due is rent , which need to be paid after every month in the starting .

Hence , from the given information of the question ,

The correct option is annuities due.

Kamara Jobs, a recruitment company, decides to launch its own global online application. It pays $200,000 to obtain the proven technology required to launch this application from an information technology firm. In the context of the costs of useful information, Kamara Jobs has incurred _____.A) processing costB) retrieval costC) acquisition costD) storage cost

Answers

Answer:

(C) Acquisition cost

Explanation:

The correct word for the given statement is acquisition cost

So option (c) is correct option

Acquisition cost alludes to the in with no reservations cost to buy a benefit. These expenses incorporate delivery, deals charges, and customs expenses, just as the expenses of site planning, establishment, and testing.

When securing property, obtaining expenses can incorporate looking over, shutting charges, and taking care of liens.

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Answer:

c.  acquisition cost

Explanation:

Acquisition cost -

It refers to the amount necessary to buy any asset , is referred to as the acquisition cost .

The cost includes all the custom charges , taxes , shipping charges , testing , installation and preparation charges .

In case of acquiring any property , cost like , closing fees , surveying , paying off liens are also includes .

The total amount is the book value of the property or asset .

Hence , from the given scenario of the question,

The correct option is c.  acquisition cost .

Rhonda Miller wants to take out a 4 year loan to purchase a car. What type of computation would she use to calculate her monthly payments?A. Present value of a single amountB. Future value of a single amountC. Simple interestD. Present value of an annuityE. Future value of an annuity

Answers

Answer: Option D is correct.

Rhonda Miller wants to assess how much using loan finance will cost in todays value. There are also finance lease facility available to fund the asset which means Rhonda must opt to the better option to save maximum. Calculating Present Value of annuity is the suitable option which helps in understanding how much this source of finance cost opposed to the use of finance lease.

Final answer:

Rhonda Miller would use the Present value of an annuity computation to calculate her monthly payments for a 4 year car loan, which takes into account the interest rate and time value of money.

Explanation:

Rhonda Miller wants to calculate her monthly payments for a 4 year car loan. The type of computation she would use for this is the Present value of an annuity. An annuity is a series of fixed payments made over a period of time, and the present value of an annuity calculation helps to determine the current value of those future payments when considering the time value of money and interest rates. For example, if Rhonda knows the amount of the loan, the interest rate, and the number of payment periods, she can use the present value of an annuity formula:

PV = Pmt x ((1 - (1 + r)^-n) / r)

Where PV is the present value, Pmt is the payment per period, r is the interest rate per period, and n is the total number of periods. By using this computation, Rhonda will be able to determine her monthly payments for the car loan.

If quantity of tea is measured on the horizontal axis and quantity of coffee is measured on the vertical axis, an increase in the price of coffee will cause the budget constraint to: A. pivot rightward (pivot out) along the horizontal axis. B. pivot leftward (pivot in) along the vertical axis. C. pivot leftward (pivot in) along the horizontal axis. D. pivot rightward (pivot out) along the vertical axis.

Answers

Answer:

A. pivot rightward (pivot out) along the horizontal axis

Explanation:

Tea and coffee represent substitute goods. If price of a good increases, this causes an increase in quantity demanded of it's substitute.

In the given case, quantity demanded of tea is measured on horizontal axis while quantity demanded of coffee is measured on vertical axis. The budget constraint for tea and coffee shows different combinations of quantity of tea and coffee demanded within a fixed expenditure.

When price of coffee increases, within the same budget constraint, the quantity demanded of tea shall rise.

This would lead to the budget constraint to pivot rightward (pivot out) along the horizontal axis.

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