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Vanyuwa [196]
2 years ago
8

Fruit First produces and sells baskets of dried fruit for $20 each. It receives a special order from Carol Costellano for 150 fr

uit baskets at a special price of $16. The company incurs a variable cost of $11 and a fixed manufacturing overhead of $6 per unit of fruit basket. The company is operating at full capacity and will have to cancel its existing orders to fill this special order. What will be the total opportunity cost that must be considered in the incremental analysis for this decision?
Business
1 answer:
borishaifa [10]2 years ago
3 0

Answer:

$600

Explanation:

Normal selling price for baskets of dried fruits = $20

No. of baskets ordered = 150

At this price, the total selling revenue will be =$20*150 =$3000

Variable cost = $11*150 =$1650

Manufacturing overhead cost = $6*150 =$900

Income at a selling price of $20 = $3000-$(1650+900)=$450

For the special order

Selling price= $20

Total selling revenue =$16*150=$2400

Income at a selling price of $16 = $2400-$2550 = -$150 loss

The opportunity cost of this decision will be leaving a profit of $450 and obtaining a loss of $150

Total opportunity cost that must be considered in the incremental analysis for this decision =$450 +$150 =$600

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Answer:

were is the question

Explanation:

4 0
2 years ago
Wendy wants to start a business. She knows many unaccredited investors who she knows will help her jumpstart her business. What
vodka [1.7K]

Available Options are:

A. Investors' allowable investment depends on the accredited or non-accredited status.

B. Investors may invest a combined $50 million within a 12-month period.

C. Investors may invest no more than $1 million combined for the first year of the business.

Answer:

Option C. Investors may invest no more than $1 million combined for the first year of the business.

Explanation:

The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:

1. $2000

2. Or the lesser of (If the net worth of Wendy is less than $100,000)

  • 5% of its total income for the year
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There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.

Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.

This means the non-accredited investor can not invest more than $1 million.

3 0
2 years ago
Paragon Leasing has been approached by Mid-America Trucking Company (MATC) to provide lease financing for a fleet of new tractor
Vilka [71]

Answer:

$32,647

Explanation:

P=R(1-(1+i)^-n)/i

Where P=$140,000

R=?

i=14%

n=7 years

by putting above values in formula, we get

140,000=R (1-(1+.14)^-7)/.14

$140,000=R4.288

R=$140,000/4.288

R=$32,647

4 0
2 years ago
A toll tunnel has decided to experiment with the use of a debit card for the collection of tolls. Initially, only one lane will
erma4kov [3.2K]

Answer:

expect the customer to wait = 6.74  sec

1 car would expect to see in the system.

Explanation:

given data

arrive rate λ = 300 per hour

verify the debit card u = 1 card per 5 second = 720 card per hour

solution

L(q) = 300² ÷ ( 2 × 720 (730-300) )  

L(q) = 0.1453

L(q) = 2.0833

and

L(s) = 0.1453 + 300/720

L(s) = 0.5619   W(s)

so

expect the customer to wait = 0.5619 ÷ 300

expect the customer to wait =0.001873  

expect the customer to wait = 6.74  sec

and

L(s) 0.5619 = 1 cars

so 1 car would expect to see in the system.

5 0
2 years ago
The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during each of the next 2 years. Assu
JulijaS [17]

Answer:

<em>For the 2 year treasury securities it was 7%, and for a 3 year treasury securities it was 7.33%</em>

Explanation:

<em>From the example, </em>

<em>The real risk rate of interest is= 4%</em>

<em>The inflation expectation of this year=2%</em>

<em>Inflation expected  for the next 2 years=4%</em>

<em>Maximum risk premium=0</em>

<em>Therefore</em>

Rt= r* + (Inflation/ year)

Rt2= 4 + (2 + 4 / 2) = 7%

<em>Rt3= 4 + (2 + 4 / 3) = 7.33% </em>

4 0
2 years ago
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