Answer:
- $45000
Explanation:
Economic profit is different from accounting profit in the sense that former also takes into consideration the implicit costs, also referred to as opportunity costs unlike the latter.
Economic Profit = Accounting profit - Opportunity Costs
Opportunity costs are defined as the the cost of sacrificed or foregone alternative for pursuing a particular alternative. Such costs are implicit or notional as they are not actually incurred.
In the given case, Economic Profit = Revenues - Explicit costs - Implicit costs
Here, the implicit cost is $60,000 income foregone.
Thus, Economic Profit = $20,000(income) - $ 5000 (expense) - $60,000 (opportunity cost)
Economic Profit = ($ 45,000) or -$45,000.
D. Reading everything very quickly
Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par.-The correct statement is -<u>The bonds will sell at a premium if the market rate is 5.5</u>
Explanation:
The important point to be noted from the given question is that the bond is offered when the market rate is 6 percent.
So ,the bonds are said to selling at premium since the market rate has reduced from 6% to 5.5%
In this case it is right to say that -Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par.-The correct statement is -<u>The bonds will sell at a premium if the market rate is 5.5</u>
Answer:
a) 2,093
b) It will reorder once there are 420 units left (demand during lead-time)
c) 34 days
Explanation:
a) economic order quantity
<u>Where:</u>
D = annual demand = 21,900
S= setup cost = ordering cost = 50
H= Holding Cost = 0.50
EOQ = 2092.844954
b) it takes four days to arrive:
if it sale 420 units per week then:
420 x 4/7 = 240 units are demand during delivery
c) order cycle:
EOQ / Annual Demand
2,093 / 21,900 = 0,09557 x 365 = 34.8333 days
It will order every 34 days (if it orders after 35 days will face shortage)
Answer:
Explanation:
a. Low Balance: You can set up your bank account for this alert on a threshold which you want to make. This alert inform you about the low balance in your bank account when it touches to the threshold you set up that may be any amount for example 50$ or 500$ or 1000$ so that you know that you shouldn't . It facilitate you to safe from the expenses like OD etc.
b. Mobile Deposit. You always receive a text message whenever you used your smartphone to deposit the check with it. It may be act as a receipt for the check submission while using with your smartphone.It also provide you a facilitation when the check is cleared and deposit received in your bank account
c. Unusual Activity. This type of alert message received while bank detects an unusual activity which could be fraud etc.For example the transactions which are made unusual and which may not be your regular activity with your account.It could also occur when your account transaction has been made outside of your normal living etc area
2.
The most important type of alert would be the Unusual Activity as it involves the risk more that other two alerts.
