Opportunity cost is not just about monetary cost; it includes anything other than the price of a good that a consumer gives up in order to buy his or her good of choice. Looking to invest in his first pair of dress shoes, Sean is deciding between a pair of slip-on shoes and a pair of traditional lace-up wingtips. In this case, the slip-ons cost $50 more than the Wingtips. Which of the following should be included in the opportunity cost of buying the slip-ons? Included in the Opportunity Cost
i. the classic look of traditional wingtips
ii. the savings that would come from buying the wingtips the money
iii. the no-lace convenience of slip-ons
iv. the pride that comes with wearing the more expensive shoes

Answers

Answer 1
Answer:

Final answer:

Opportunity Cost refers to potential gain given up by choosing one option over others. For Sean, this includes the vintage look of wingtips and the saved $50 if he chooses slip-ons instead of wingtips. The convenience and pride Sean gets from the slip-ons don't count as Opportunity Cost since they are benefits, not losses.

Explanation:

The concept of Opportunity Cost in economics and business refers to the loss of potential gain from other options when one option is chosen. In Sean's case, the Opportunity Cost of buying the more expensive slip-ons shoes includes:

  1. The classic look of traditional wingtips: Sean gives up the vintage statement a lace-up wingtips may offer;
  2. The savings that would come from buying the wingtips: Sean would spend $50 extra buying the slip-ons than if he chose the wingtips;

However, the last two points: 'the no-lace convenience of slip-ons' and 'the pride that comes with wearing the more expensive shoes' do not fit into the Opportunity Cost. They instead are perceived benefits of the chosen slip-ons and not what is given up when he chooses that option.

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Widgets, Inc., based in the United States, makes small parts for the auto industry. Over the past couple of years, Widgets has laid off many workers due to auto industry outsourcing. The federal government has imposed tariffs to discourage outsourcing. This is called

Answers

The policy adopted by the federal government that imposed tariffs to discourage outsourcing is known as Protectionism policy.

A Protectionism policy are adopted or enforced to protect the domestic workers or industries against external bodies.

Hence, the policy adopted by the federal government that imposed tariffs to discourage outsourcing is known as Protectionism policy.

Read more about Protectionism

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Answer:

This is called:

Trade Restriction

Explanation:

Outsourcing to foreign markets can cripple domestic industries, increase local unemployment, and impose trade imbalance.  To check excessive outsourcing, the federal government imposes tariffs.  Such a trade restriction is considered necessary within the domestic economy.  But it may be regarded as a restriction of free trade within the international community.

Xenon Tech acquired a patent on January 1st, 2013, for $26,400. The patent was estimated to have a useful life of 12 years. On July 1st, 2017, the company incurred legal fees of $6,000 to successfully defend the patent in an infringement suit. How much amortization expense will Xenon Tech recognize on the Income Statement for the year ended December 31st, 2017?

Answers

Answer:

The amount that will recognize under amortization expenses is $2600.

Explanation:

The first step here would be to calculate the amortization expenses for the first 4 years of the patent, here will use straight line depreciation method,

Formula - original value of asset / useful life in years

              - $26,400 / 12

             - $2200

Now for the 4 years this amount would become $2200 x 4 = $8800

The amount of amortization for the first half of 2017 ( up to 30 June ) would be-

= half of full year expenses

= $2200 / 2

= $1100

So up to 30 June 2017, the expenses are $9900 ( $8800+$1100), So the new book value would be = $26,400 - $9900

            = $16,500

In this $16,500 we will add the amount of legal fees, so the total would be -

$16,500 + $6000

= $22,500

The next step is to divide this value by remaining useful; years which is 7.5,

$22,500 / 7.5

= $3000

Now we will divide this amount by 2 because we have to take out expense for remaining last 6 months of 2017

$3000 / 2

= $1500

Adding the expenses for first and second half of 2017 to take out total amortization expense of 2017 -

$1100 + $1500

= $2600

Beverly Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred. April 2 Invested $34,830 cash and equipment valued at $15,540 in the business.
2 Hired a secretary-receptionist at a salary of $320 per week payable monthly.
3 Purchased supplies on account $830. (Debit an asset account.)
7 Paid office rent of $630 for the month.
11 Completed a tax assignment and billed client $1,360 for services rendered. (Use Service Revenue account.)
12 Received $3,940 advance on a management consulting engagement.
17 Received cash of $2,950 for services completed for Ferengi Co.
21 Paid insurance expense $150.
30 Paid secretary-receptionist $1,280 for the month.
30 A count of supplies indicated that $130 of supplies had been used.
30 Purchased a new computer for $7,000 with personal funds. (The computer will be used exclusively for business purposes.)

Journalize the transactions in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answers

Answer:

Cash          34,830

Equipment 15,540

     Capital Account          50,370

no entry needed

supplies 830

   account payable 830

rent expense 630

     cash                  630

account receivable 1,360

      service revenue          1,360

cash        3,940

    unearned revenue      3,940

cash      2,950

    service revenue     2,950

insurance expense 150

    cash                             150

wages expense   1,280

    cash                               1,280

supplies expense   130

        supplies                 130

Equipment- Computer 7,000

       Capital Account               7,000

Explanation:

We must always o debit = credit

and record the entries to reflect the reality.

onsider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $80,000 or $220,000 with equal probabilities of .5. The alternative risk-free investment in T-bills pays 5% per year. a. If you require a risk premium of 5%, how much will you be willing to pay for the portfolio

Answers

Answer:

$136,363

Explanation:

For computing the willing amount to pay, first we have to determine the expected cash flow that is shown below:

Expected cash flow is

= $80,000 × 0.5 + $220,000 × 0.5

= $40,000 + $110,000

= $150,000

Now the willing amount is

= Expected cash flow × 1 ÷ (1 + risk free investment + risk premium)

= $150,000 × 1 ÷ (1 + 10%)

= $150,000 × 0.9090

= $136,363

Your uncle will sell you his bicycle shop for $250,000, with "seller financing," at a 6.0% nominal annual rate. The terms of the loan would require you to make 12 equal end-of-month payments per year for 4 years, and then make an additional final (balloon) payment of $50,000 at the end of the last month. What would your equal monthly payments be? $4,029.37


$4,241.44


$4,464.67


$4,699.66


$4,947.01

Answers

Answer:

$4,947.01

Explanation:

In this question, we use the present value formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Future value = $50,000

Present value = $250,000

Rate of interest = 6% ÷ 12 months = 0.5 months

NPER = 4 years  × 12 months = 48 months

The formula is shown below:

= PMT(Rate,NPER,PV,-FV,type)

The future value comes in negative

So, after solving this, the answer would be $4,947.01

Assuming you make an additional final (balloon) payment of $50,000 at the end of the last month, your monthly payments is:$4,947.01.

Monthly payment

Based on the given information we would make use of financial calculator to find the PMT by inputting the below data

PMT(Rate,NPER,PV,-FV,type)

Where:

Future value= $50,000

Present value= $250,000

Interest rate= 6%/12 = 0.5%

Nper= 4 years  × 12= 48 months

Hence;

PMT=$4,947.01

Inconclusion your monthly payments is:$4,947.01.

Learn more about monthly payment here:your monthly payments is:$4,947.01.

A. Scissorwire Inc. can register with the SEC at any point after the dip in shares.

b.

The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek
Scissorwire Inc. sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of the stock drops to $5. The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following holds well in this context?
Answer


a.

Scissorwire Inc. can register with the SEC at any point after the dip in shares.

b.

The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties.

c.

The investors have been negligent in not verifying registration before purchase of shares and cannot rescind their purchase.

d.

Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.

Answers

The answer to this would be the second one
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