Answer:
A. 68,800
Explanation:
Cash balance at end of April is = Beginning cash balance on April 1st + Cash collection in April - Purchase of Materials in APril - Operating Expense in April - Capital Expenditures in APril = 14000 + 42000 - 7000 - 7000 - 5000 = 37000
Cash balance at end of May is = Beginning cash balance in May + Cash collection in May - Purchase of Materials in May - Operating Expense in May = 37000 + 45000 - 7200 - 6000 = 68,800
Answer:
North Park $13,000 $16,000 N
Upper River Beach 6,000 8,000 Y
South Shore 29,000 30,000 Y
Green Creek 900 1,300 N
Explanation:
The cleanup will happen in the area where the marginal benefit is more than the marginal cost. the North park will not be cleaned up. River beach will be cleaned Up. South shore will be cleaned up. Green creak will not be cleaned up.
Answer:
The transaction price would Leo estimated for this contract is $30,000
Explanation:
The computation of the transaction price is shown below:
= (Fixed fee + additional amount) × chance + fixed fee × chance
= $35,000 × 50% + $25,000 × 50%
= $17,500 + $12,500
= $30,000
hence, the transaction price would Leo estimated for this contract is $30,000
We simply applied the above formula so that the correct answer could come
Answer:
Part A
Purchasing the product would result in saving of $25000, if the fixed overhead of $405000 can be avoided.
Part B
Making the product would result in saving of $5000.
Explanation:
It is important to consider only the relevant cost i.e. those cost which will not be incurred if a particular decision is made and will incur if the other option is chosen.
Part A
Purchasing the product would result in saving of $25000, if the fixed overhead of $405000 can be avoided.
The Relevant cost of manufacturing the product and the purchase price are as computed below in the second image.
Part B
Making the product would result in saving of $5000.
Answer:
Investors with an experience of financial crises are better at diversifying their portfolios
Explanation:
When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.
Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.
