Suppose that Italy and Austria both produce fish and shoes. Italy’s opportunity cost of producing a pair of shoes is 5 pounds of fish, while Austria’s opportunity cost of producing a pair of shoes is 10 pounds of fish. By comparing the opportunity cost of producing shoes in the two countries, you can tell that _____ has a comparative advantage in the production of shoes, and ______ has a comparative advantage in the production of fish.
Suppose that Italy and Austria consider trading shoes and fish with each other. Italy can gain from specialization and trade as long as it receives more than _______ of fish for each pair of shoes it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _______ of shoes for each pound of fish it exports to Italy.
Based on your answers to the previous question, which of the following terms of trade (that is, price of shoes in terms of fish) would allow both Austria and Italy to gain from trade? Check all that apply.
(A) 8 pounds of fish per pair of shoes
(B) 1 pound of fish per pair of shoes
(C) 15 pounds of fish per pair of shoes
(D) 3 pounds of fish per pair of shoes
Answers
Answer:
Section 1..... Italy has a comparative advantage in the production of shoes, and Austria has a comparative advantage in the production of fish.
Section 2.... 5 pounds of fish, ; 1/10 pairs of shoes
Section 3..... A and C.
Explanation:
The comparative advantage is known to be a term that is in use in the economic world,where a country or company has the ability of producing goods at extremely lower cost compared to that of its partners or competitors.
This is very important because, the country or company will be able to produce its goods by making use of fewer resources.
And thereby gives the country or company an edge in selling its goods at a reasonable lower price when compared with that of its competitors.
In this case, it is summarized or concluded that, Italy has a lower opportunity cost of producing shoes. So, Italy has a comparative advantage in shoes and Sweden has a comparative advantage in fish.
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Paid $78,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $390 cash per truck for the cost of their annual tune-ups. Paid $312 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $438,750 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
Refer to the scenario above. If the terms of trade are 1.5 kilos of cloudberries for a kilo of salted cod, the terms of trade are ________
The following data from the just completed year are taken from the accounting records of Mason Company: Sales$658,000 Direct labor cost$83,000 Raw material purchases$135,000 Selling expenses$106,000 Administrative expenses$46,000 Manufacturing overhead applied to work in process$202,000 Actual manufacturing overhead costs$224,000 InventoriesBeginningEnding Raw materials$8,800$10,200 Work in process$5,900$20,500 Finished goods$74,000$25,100 Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement.
Rapid prototyping could be an advantageous methodology for developing innovative computer-based instruction. Software engineers have been successful in designing applications by using rapid prototyping. So it also could be an efficient way to do instructional design.
Answers
Answer: d. All of the above
Explanation:
A cost driver refers to the activity that causes an actual change in the cost of a transaction and by extension it's local cost.
For example, cost driver of labor would be the number of people working or cost driver of Electricity paid would be the actual number of units consumed.
In the above, the products and services mentioned are the integral activities for those firms so they are cost drivers to those firms.
B.Low openness
C.High agreeableness
D.High neuroticism
E.Low extraversion
Answers
Answer:
high conscientiousness
Explanation:
Conscientiousness talks about a personality traits that shows someone as being diligent, reliable and responsible. It also talks about how someone control their desire to act. It is a trait that can be affected by genetic and environmental factors. Conscientiousness also develops more and more in most people as they grow older.
A conscientiousness person is responsible, an organised person who plan very well ahead of time
Answer:
The correct answer is letter "A": High conscientiousness.
Explanation:
Conscientiousness could be seen as an advantage and disadvantage. While some people consider conscientiousness individuals reliable, responsible, careful, and diligent, some others may see them as perfectionists and even workaholics. Then, while selecting a new Chief Executive Officer, the applicant needs to have high conscientiousness but executives in charge of selecting the best prospective manager -Mary in the example, must make sure that the individual balances that skill.
Answers
Answer:
The incremental costs of making and buying component RX5 is $100,000
Explanation:
For computing the increment cost of making and buying component RX5, first we have to compute the cost of making and buying component RX5 separately.
Cost of making includes:
Direct Material = 50,000 × $5 = $250,000
Direct Labor = 50,000 × 9 = $450,000
Variable Overhead cost = 50,000 × 10 × 30% = $150,000
So, total cost of making = Direct material cost + direct labor cost + variable overhead cost
= $250,000 + $450,000 + $150,000
= $850,000
Now, the cost of buying component is equals to
= units × RX5 per unit
= 50,000 × $19
= $950,000
So, the incremental costs of making and buying component RX5 is equals to
= cost of making - cost of buying component
= $950,000 - $850,000
= $100,000
Hence, the incremental costs of making and buying component RX5 is $100,000
Final answer:
The incremental cost of making component RX5 is $5.00 per unit.
Explanation:
To calculate the incremental costs of making and buying component RX5, we need to compare the cost of making the component in-house versus buying it from an outside supplier. The incremental cost of making the component is the difference between the current cost per unit to manufacture and the cost offered by the supplier. Here's how to calculate it:
- Incremental cost of making = Total costs per unit - Cost offered by the supplier
- Incremental cost of making = $24.00 - $19.00
- Incremental cost of making = $5.00 per unit
The incremental cost of making component RX5 is $5.00 per unit.
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Answers
the Messing Company's January 1 notebook entry reads: Cash $3,860
Credit cost: 140
Sales 4,000
What is Sales?
A sale is an agreement between a buyer and a seller in which the seller exchanges money for the sale of tangible or intangible products, assets, or services. There are two or more parties involved in a sale. A sale, or a contract between two or more parties, such as the buyer and seller, can be thought of in larger terms.
Messing Company's January 1 notebook entry reads: Cash $3,860
Credit cost: 140
Sales 4,000
Therefore, the Messing Company's Sales are 4,000
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Answer:Cash $3,860
Credit expense 140
Sales 4,000
Explanation:
Answers
Explanation:
The journal entries are as follows
a. Unrealized Holding Gain or Loss Dr $1,310
To Fair value Adjustment $1,310
(Being the unrealized gain or loss is recorded)
2. Cash $9,410
Loss on Sale of Investment $490 ($9,900 - $9,410)
To Equity Investment $9,900
(Being the sale of the stock is recorded)
3. Fair value Adjustment $1,020
To Unrealized Holding Gain or Loss $1,020
(Being the fair value adjustment is recorded)
The computation is shown below:
Stock Cost Fair Value Unrealized Gain(Loss)
Clemson Corp. Stock $20,200 $19,410 -$790
Buffaloes Co. stock $20,200 $20,700 $500
Net unrealized gain (loss) -$290
2017 -$1,310
Fair value adjustment -$1,020
Answers
Answer:
Cost of Equity 8.794%
Explanation:
We can solve for the cost of equity using the CAPM
risk free 0.0291
premium market = market rate - risk free 0.071
beta(non diversifiable risk) 0.88
Ke 0.09158 = 9.158%
Or using the gordon dividend grow model
D= 3.57
return = ?
growth 0.0325
stock = 68.91
we solve for return:
return = 0,08430670 = 8.43%
Now we have two diferent rates, so we can do an average to get the best estimate cost of equity
(9.158 + 8.43)/2 = 8.794%
Final answer:
The company's cost of equity, based on provided data points and the Capital Asset Pricing Model (CAPM), is calculated to be 9.14% annually.
Explanation:
Cost of equity is typically estimated using the Capital Asset Pricing Model (CAPM). Under the CAPM, the cost of equity is a function of the risk-free interest rate, the equity's beta, and the expected market risk premium. In this case, we can substitue the given values into the CAPM equation, which is: Cost of Equity = Risk-free rate + Beta * Market Risk Premium. Therefore, the company's cost of equity can be calculated as: Cost of Equity = 2.91% + 0.88 * 7.10% = 9.14%. As for the dividends, they are growing at a rate of 3.25% annually, but they are not directly contributing to the company's cost of equity.
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