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Beta's Net capital expenditure is 95.
Explanation:
The computation of the Beta's net capital expenditure is given below
Closing PP&E balance + Depreciation Expense - Opening PP&E balance
= 170 +75 - 150
= 95
While computing it, we have added the depreciation expense and deducted the PP &E balance to the closing PP&E balance so that the accurate amount can be more.
It can also be calculated by capital expenditures by using data from a company's income statement and balance sheet. In the income statement, find the amount of depreciation expenses recorded for the current period. in the balance sheet the current period's property, plant and equipment are placed in line- item balance.
Answer:
The operating Income should increase by about 59.0%.
Explanation:
Degree of Operating Leverage = % Change in EBIT / % Change in Sales
5.9 = % Change in EBIT / 10%
% Change in EBIT = 5.9 * 10% = 59.0%
Answer: a). Spain
b). none
c). 2.4
Explanation: a). Absolute advantage occurs when a country produces more of a good than the other country. In this case, Spain produces 50 units of Tractors while, Bolivia produces only 30 units of Tractors. Thus, Since Spain is producing more it has an absolute advantage in Tractors.
b). Both the countries are producing equal units of Cotton. Thus, we can say that none of them has an absolute advantage in cotton production.
c. Opportunity cost is the cost of the lost alternative. When Spain produces Tractors it is sacrificing production of Cotton. So, opportunity cost on 1 unit of Tractor will be,

Thus, 2.4 units of cotton which is given up is the opportunity cost of Spain for producing 1 unit of Tractor.