Answer:
C. $4000
Explanation:
Given that
Total opportunity cost = salary plus interest forgone, that is 50,000 + 6% of 100,000
= 50,000 + 6000 = 56,000.
Total revenue received = 60,000
Recall that
Economic profits = Revenue - (implicit + explicit cost)
And that
Implicit cost = opportunity cost = 56,000
Explicit cost = 0 (from the question, revenue covered it)
Thus
Economic profit = 60000 - 56000
= $4000
Answer:
May motivate less productive employees to work harder.
Explanation:
When an employee is recognised and rewarded for exceptional performance, apart from boosting the moral of the employee it also challenges other employees to perform better on their jobs.
In this instance Anthony has been receiving bonuses for being a high perfomer. This time around he an extra large bonus for his performance.
Because of this Hannah gets motivated to also perform better at her job so she can also get a bonus.
Answer:
1. 300 tires
2. 150 units
3. 32 times
4. 11.4 days
5. $2,400
6. $2,400
Explanation:
Economic order quantity is the quantity at which business incur minimum cost. This is the level of order where the holding cost equals to the ordering cost of the business.
Material cost remains the same whatever the the order level. The costs that vary with the change in order level are ordering cost and holding cost.
The cost incurred to for each order placed is called ordering cost and cost which incurred to hold the inventory for a specific period is called holding cost.
EOQ = 
EOQ = 
EOQ = 300 units
1. EOQ is the level of order That should be placed to minimize the total cost of the business. The manager should order 300 tires in each lot.
2.
Average Inventory = EOQ / 2 = 300 / 2 = 150 units
3.
Number of orders = Total yearly demand / EOQ = 9,600 / 300 = 32 times
4.
Number of days = ( EOQ / total demand ) x 365 = 300 / 9600 x 365 = 11.4 days
5.
Fixed ordering cost = Total Demand / EOQ x $75 = (9600 / 300) x $75 = $2,400
6.
Holding cost = Average Inventory x holding cost per unit = 150 units x $16 = $2,400
Here Holding cost and ordering cost is same at EOQ level.
Answer:
Nola and Charles Collusion at Trident, IA.
Helping or Impeding Scenarios:
Helping Scenarios:
4. Nola and Charles are regulars at the same coffee house. They talk regularly
5. Charles and Nola both charge a fixed per person price for a party
Impeding Scenarios:
1. Charles develops a signature appetizer that becomes the must have in Trident
2. A party planning school opens and the new graduates are ready to plan!
3. Nola lowers her price on national television
6. Nola's marginal cost is lower than Charles's.
7. Most of the parties are given by Trident's largest employer, a water bottling plant.
Explanation:
Nola and Charles can only enter a collusion agreement secretly because it is illegal. Since the agreement is secret, it is not enforceable in the court of law. The tendency for Nola and Charles to be entangled in the prisoner's dilemma is very high. It is also not possible for them to protect their collusion for very long because they have different cost bases and core competencies that derail collusion on a sustainable large scale. Graduates of party organization and other market participants, including the large firm that hosts most of the parties in the area will end the collusion before long.
Answer:
- Melba's adjusted basis for the land at the Acquisition date is $625000
- Melba's adjusted basis for the land one year later is $645000
Explanation:
The adjusted basis for a property/land is the net cost of the property after adjusting for factors that might attract tax as related to the land
The adjusted basis for the land at the acquisition date is the net cost of the land at the acquisition date which will be ( $225000 + $400000 ) because that was the net cost of the Land at the date of acquisition before an agreement was later reached by Melba requiring him to pay $400000 plus an interest of 5%
Hence the adjusted basis for the land one year later will be
= ( $225000 + $400000 ) + 5% of $400000
= ( $625000 ) + $20000
= $645000
