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KatRina [158]
2 years ago
13

Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it i

s more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $103 for the suit:Determining opportunity cost JuanitaStore Travel Time Each Way (Minutes) Price of a Suit (Dollars per suit) Local Department Store 15 103Across Town 30 88Neighboring City 60 63Juanita makes $16 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.Store Travel Time Each Way (Minutes) Price of a Suit (Dollars per suit)Local Department Store 103 Across Town 88 Neighboring City 63Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:_______
Business
1 answer:
Gre4nikov [31]2 years ago
7 0

Answer:

The lower economic cost will be going to neighboring city as the difference in price make it worth lossing those working hours.

Explanation:

As all placed will add the same half hour for shopping we should ignore and calculate based in the difference in the price of the suit and distance travel

We should add up the opportunity cost of the labor wage lost to go destination and go back.

Local department 103 dollars + 15 minutes x 2 ( back and forth) x $16 per hour = 103 + 8 = $ 111

Across town 88 dollars + 30 min x 2 x $16 per hour

88 + 16 =   $ 104

Neighboring city $63 + 1 hours x 2 x $16 per hour

$63 + $32 = $95

<u><em>The lower economic cost </em></u>will be going to neighboring city as the difference in price make it worth lossing those working hours.

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Security M has expected return of 17% and standard deviation of 32%. Security S has expected return of 13% and standard deviatio
Murljashka [212]

Answer:

0.047424

Explanation:

Given that

Expected return of security M = 17%

Standard deviation of Security M = 32%

Expected return of security S = 13%

Standard deviation of security S = 19%

And, the correlation coefficient = 0.78

So, by considering the above information the co variance is

=  Correlation coefficient × Standard deviation of Security M × Standard deviation of security S

= 0.78 × 0.32 × 0.19

= 0.047424

5 0
2 years ago
Dove and Eagle formed a business entity in which they are equal owners. Dove contributed cash of $100,000, and Eagle contributed
nlexa [21]

Answer:

S corporation

Explanation:

In the given case, The eagle basis at the closing of the year is 70,000 i.e. $40,000 + $30,000 (50% of $60,000)

In the case when the entity was a general partnership so 50% of $10,000 i.e. $5,000 would be added to the basis of Eagle

So here the type of entity that was formed is S corporation

The same is relevant

4 0
2 years ago
What "extras" can you include in a nontraditional resume that would not be included in a traditional résumé?
pochemuha

The extra items that you can include in a web resume that would not be included in a traditional resume are graphics, buttons and pictures

6 0
2 years ago
Read 2 more answers
A company needs $8 million in new capital for expanded composites manufacturing. It is offering small-denomination corporate bon
Softa [21]

Answer:

nominal interest rate = 4% annual

effective interest rate =  5.56% annual

Explanation:

the bond's nominal rate is basically the coupon rate

to calculate the bond's effective interest rate we must calculate its yield to maturity:

YTM = [coupon + [(face value - present value) / n]} / [(face value + present value) / 2]

  • coupon = $1,000 x 4% x 1/2 = $20
  • FV = $1,000
  • PV = $800
  • n = 40

YTM = [20 + [(1,000 - 800) / 40]} / [(1,000 + 800) / 2]

YTM = 25 / 900 = 2.777 semiannual ⇒ 5.56% annual

6 0
2 years ago
Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intra
madam [21]

Answer:

Learning curve

Explanation:

Reference is made to the time and cost with respect to the fact that the proposed system is about the same size as others. Learning curve theory teaches to identify cost and time in relation to specific jobs

3 0
2 years ago
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