Answer:
Betsy should simply tell the truth: that the boat was actually inspected by two mechanics, but not only it was not repaired, but both mechanics had a very different diagnosis about what was wrong with the boat.
She should also warn the buyer that the boat likely needs at least a new fuel pump, and in case the diagnostic of the first mechanic (Gail) is true, the boat then would likely need an expensive repair.
Answer:
$126
Explanation:
We can calculate the amount Mira can pay for the synthetic material per unit (refrigerator) and meet its profitability goal by deducting the estimated profit and then all the cost from the selling price per unit.
Selling price per unit $260
Less
estimated return (260x30%) = ($78)
Labor costs ($32)
Overhead costs ($24)
Material $126
Amount Mira can pay for Synthetic material per unit is $126
Answer: $8,391.90
Explanation:
So the company borrowed $40,000 from a bank.
They are to pay 7% interest on the note per year for 6 years.
We are to find the annual payments.
7% represents a constant payment schedule per year so we can use an Annuity formula.
Seeing as the Annuity factor has been calculated for us already we don't need to formula though.
The present value of an annuity factor for 6 years at 7% is 4.7665.
Calculating the present value of the annual payment can be done as follows,
= Amount / PVIFA (Present Value Interest Factor for an Annuity)
= 40,000/4.7665
= 8391.90181475
= $8,391.90
The annual payments equal $8,391.90.
Answer:
c. The equilibrium quantity is less than the socially optimal quantity.
Explanation:
Externalities are positive / negative side effects to other parties, which are not monetarily valued & compensated.
Positive Externalities cause extra positive side effect, have extra social benefit apart from private benefit. Their free market unregulated equilibrium under estimates their Total Benefit (considering only private benefit , ignoring social benefit). So the equilibrium quantity is also under estimated. Hence, Equilibrium quantity is less than socially optimal quantity.
Answer:
The overhead application rate is 1.8
Explanation:
In the question both the estimated and actual overhead cost , material and labor cost are provided -
ESTIMATED ACTUAL
Overhead cost $396,000 $418,000
Material cost $410,000 $413,200
Direct cost $220,000 $224,000
Overhead application rate can be calculated by dividing the total budgeted overhead cost by direct labor cost.
= Budgeted overhead cost / direct labor cost
= $396,000 / $220,000
= 1.8
