Kenner Company is considering two projects. Project A Project B Initial investment $85,000 $24,000 Annual cash flows $20,676 $ 6,011 Life of the project 6 years 5 years Depreciation per year $14,167 $ 4,800 Suppose that Kenner Company requires a minimum rate of return of 8%. Which project is better in terms of net present value
Answers
Answer: Project A is better as it has a higher NPV of $76,075.70
Explanation:
Annual cashflow of Project A = Annual cashflow + Depreciation
= 20,676 + 14,167
= $34,843
Project B cashflow = 6,011 + 4,800
= $10,811
As these are constant amounts, they are to be considered annuities.
Find the present value of these annuities and deduct the initial investment from them for the NPV.
Present value of annuity = Annuity * Present value interest factor of annuity, 8%, number of years
Project A NPV = (34,843 * Present value interest factor of annuity, 8%, 6 periods) - 85,000
= (34,843 * 4.6229) - 85,000
= $76,075.70
Project B NPV = (10,811 * Present value interest factor of annuity, 8%, 5 periods) - 24,000
= (10,811 * 3.9927) - 24,000
= $19,165.08
Project A is better as it has a higher NPV of $76,05.70
Related Questions
The tool within the "Assessing Opportunities" step of the Strategic Sourcing Process that graphically orders categories of numerical data in descending order so that the most important categories are easily recognized is called a:
Answers
Answer:
Pareto chart
Explanation:
A Pareto chart can be regarded as bar graph, The lengths of the bars are been arranged having longest bars on the left, on the right is the shortest bar, with this arrangement the chart visually gives a depiction about which situations are more significant. The lengths of the bars gives a representation of frequency or representation of cost i.e time or money. It should be noted that Pareto chart is the tool within the "Assessing Opportunities" step of the Strategic Sourcing Process that graphically orders categories of numerical data in descending order so that the most important categories are easily recognized.
The tool within the "Assessing Opportunities" step of the Strategic Sourcing Process that graphically orders categories of numerical data in descending order so that the most important categories are easily recognized is called a Pereto chart
A Pareto chart is simply known to be a type of chart that has bars and a line graph. It is the point where individual values are shown in descending order by bars, and the cumulative total is shown by the line.
It serves mainly to show the most important among a said large amount or set of factors.Pareto charts show the step by step frequency counts of data.Conclusively, the charts are used to show areas to focus on first in process improvement.
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If a company reports a net loss, it Group of answer choices may still have a net increase in cash. will not be able to pay cash dividends. will not be able to get a loan. will not be able to make capital expenditures.
Answers
Answer:
may still have a net increase in cash
Explanation:
In the case when the company recognized the net loss so it might be the condition that there is an increase in the cash balance as in the case as the closing balance should be more than the beginning balance of cash
So as per the given question, the above should be the answer and the same is relevant
However, similar to bonds, preferred stockholders receive a fixed payment—their dividend—before the company’s residual earnings are paid out to its common stockholders and, as with common stock, preferred stockholders can benefit from an appreciation in the value of the firm’s stock securities. Consider the following case of Wellington Industries: Wellington Industries pays an annual dividend rate of 8.00% on its preferred stock that currently returns 10.72% and has a par value of $100.00 per share. What is the value of Wellington’s preferred stock?
Answers
Answer: $74.63
Explanation:
Preferred shares are treated like perpetuities which means that the value is:
= Annual dividend/required return
Annual dividend:
= Dividend rate * Par value
= 8% * 100
= $8.00
Value of share = 8 / 10.72%
= $74.6269
= $74.63
Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On January 3, it is installed on a required operating platform costing $1,160, and it is further readied for operations. The company predicts the machine will be used for six years and have a $14,000 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.
Required:
1. Prepare journal entries to record the machine’s purchase and the costs to ready and install it.
Cash is paid for all costs incurred.
2. Prepare journal entries to record depreciation of the machine at December 31 of (a) its first year in operations and (b) the year of its disposal.
Prepare journal entries to record the machine’s disposal under each of the following separate assumptions: (a) it is sold for $15,000 cash; (b) it is sold for $50,000 cash; and (c) it is destroyed in a fire and the insurance company pays $30,000 cash to settle the loss claim.
Answers
Answer:
Onslow Co.
Journal Entries:
1. Jan. 2: Debit Equipment $178,000
Credit Cash $178,000
To record the cash payment for equipment purchase.
2. Jan. 3: Debit Equipment $4,000
Credit Cash $4,000
To record the cash payment for readying the equipment for use.
3. Dec. 31: Debit Depreciation Expense $28,000
Credit Accumulated Depreciation $28,000
To record depreciation expense for the first year.
4. Dec. 31, Year 5: Debit Equipment Disposal$178,000
Credit Equipment $178,000
To transfer the equipment account to the Equipment Disposal account.
Debit Accumulated Depreciation $140,000
Credit Equipment Disposal $140,000
To transfer accumulated depreciation to the Equipment Disposal account.
a) Debit Cash $15,000
Credit Equipment Disposal $15,000
To record the cash proceeds from sale of equipment.
Debit Loss on Sale of Equipment $23,000
Credit Equipment Disposal $23,000
To record the loss on Equipment Disposal.
b) Debit Cash $50,000
Credit Equipment Disposal $50,000
To record the cash proceeds from sale of equipment.
Debit Sale of Equipment $12,000
Credit Gain on Sale of Equipment $12,000
To record the gain on Equipment Disposal.
c) Debit Cash $30,000
Credit Equipment Disposal $30,000
To record the cash proceeds from insurance company.
Debit Loss on Disposal $8,000
Credit Equipment Disposal $8,000
To record the loss on Equipment Disposal.
Explanation:
a) Data and Calculations:
January 2: Cost of used machine = $178,000
January 3: Readying costs = $4,000 ($2,840 + $1,160)
Estimated useful life = 6 years
Estimated salvage value = $14,000
Depreciable amount = $168,000 ($182,000 - $14,000)
Depreciation method = straight-line method
Annual depreciation expense = $28,000 ($168,000/6)
Accumulated depreciation at December 31, Year 5 = $140,000 ($28,000*5)
Disposal date = December 31, Year 5
Journal Entries Analysis:
1. Jan. 2: Equipment $178,000 Cash $178,000
2. Jan. 3: Equipment $4,000 Cash $4,000
3. Dec. 31: Depreciation Expense $28,000 Accumulated Depreciation $28,000
4. Dec. 31, Year 5: Equipment Disposal $178,000 Equipment $178,000
Accumulated Depreciation $140,000 Equipment Disposal $140,000
a) Cash $15,000 Equipment Disposal $15,000
Loss on Sale of Equipment $23,000 Equipment Disposal $23,000
b) Cash $50,000 Equipment Disposal $50,000
Equipment Disposal $12,000 Gain on Sale of Equipment $12,000
c) Cash $30,000 Equipment Disposal $30,000
Loss on Disposal $8,000 Equipment Disposal $8,000
1. The highest risk for the exporter is in a. Letter of credit c. Advance payment b. Bill of exchange d. Consignment sales
Answers
Answer:
1. The highest risk for the exporter is in
d. Consignment sales.
Explanation:
a) A consignment sale is not an actual sale. The risk remains with the exporter until the consignee has sold the goods and remitted the required amount to the consignor (exporter). With a letter of credit, the exporter has made an actual sale guaranteed for payment by the importer's bank. With advance payment, the exporter has received some payment for the goods before the importer receives them. With a bill of exchange, there is a formal instrument acknowledging the sale. Therefore, a bill of exchange, letter of credit, and advance payment are used for actual sales, while consignment sale is for transfers of goods for sale.
The end-of-period spreadsheet (work sheet) for the current year for Jamal Company shows Balance Sheet columns with a debit total of $570,210 and a credit total of $506,590. This is before the amount for net income or net loss has been included. In preparing the income statement from the end-of-period spreadsheet, what is the amount of net income or net loss?
Answers
Answer:
$63,620
Explanation:
Calculation to determine the amount of net income or net loss
Using this formula
Net income = Total debit - Total credit
Let plug in the formula
Net income=$570,210 -$506,590
Net income=$63,620
Therefore the amount of net income is $63,620
In deciding who should chair the wellness committee, several members identified Ian, a tall, handsome 40-ish staff accountant with a lively sense of humor, as someone who would do a good job. It is possible that the committee members were operating under which leadership approach?
a. Traits approach
b. Situational approach
c. Functional approach
d. Relational approach
Answers
Answer:
a. Traits approach
Explanation:
It is correct to state that the committee members were operating under the leadership traits approach, which corresponds to the collective perception of an individual's personality through their personal characteristics that are outstanding and that make them stand out among other individuals.
As in the case of Ian, who was perceived by many members as a person with a lively sense of humor, as someone who would do a good job.
Suppose that you can sell as much of a product (in integer units) as you like at $68 per unit. Your marginal cost (MC) for producing the qth unit is given by: MC = 9q. This means that each unit costs more to produce than the previous one (e.g., the first unit costs 9*1, the second unit (by itself) costs 9*2, etc.). If fixed costs are $60, what is the optimal output level?
Answers
Answer:
8 units
Explanation:
P = $68 per unit
MC = 9q
Fixed cost = $60
It is noted that seller can sell as much as a product at $68 per unit. This means that the firm is price taken, hence, it is case of perfect competition.
For a perfectly competitive firm, the optimal output is at: P = MC
i.e. 68 = 9q
=> q = 68/9
=> q = 7.556
> q = 8
So, the optimal output level is 8 units.
which type of exporting has the least amount of commitment and risk but will probably return the least profit
Answers
Answer: Indirect Exporting
Explanation:
Indirect exporting describes a scenario where an entity exports to another country through an intermediary. They essentially sell to this intermediary and this intermediary then sells to consumers in other countries.
Much like investment banks underwriting stock, this type of exporting has very little risk and commitment attached because it simply involves one selling everything to an intermediary. The company exporting has therefore absolved itself of further risk which will then be incurred by the intermediary. t
The intermediary will however buy the goods at a discount due to the risk they take on. As a result, this gives less profit.
How do you think the four management functions of planning, organizing, leading , and controlling fit in with the ideas Sinek expresses in his talk?
Answers
Answer:
This posting should be a minimum of one short paragraph and a maximum of two paragraphs. Word totals for this post should be in the 100–200-word range. Whether you agree or disagree, explain why with supporting evidence and concepts from the readings or a related experience. Include a reference, link, or citation when appropriate.
The four functions of management are planning, organizing, leading, and controlling. By applying the right resources and knowledge, all these functions can easily fit in the ideas.
What is Management?More than just specialized knowledge, management requires an ability to navigate numerous procedural, structural, and interpersonal challenges in the process of guiding one's team to the completion of various goals.
What are the four management functions?No matter which company you work in, these four management functions remain consistent and applicable across all sectors.
Planning is important to identify the goals and making plans to attain these goals.Organizing refers to taking up of these plans and putting into action.Leading is the stage of motivating and influencing employees to do the work. Controlling function consists of monitoring performance and progress through project execution and making adjustments as needed.Thus, by using knowledge, team-management, and right resources, all these functions can fit in with the ideas.
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I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is 0, when the beta is really 1, how much more will I offer for the firm than it is truly worth? Assume the risk-free rate is 4% and the expected rate of return on the market is 10%. (Input the amount as a positive value.)
Answers
Answer:
$15,000
Explanation:
Value of a perpetuality = cash flow / r
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
4 + 0 (10 - 4) = 4
1,000/ 0.04 = 25,000
4 + 1 (10 - 4) = 10
1000 / 0.1 = 10,000
25,000 - 10,000 = 15,000
Bothell Company uses a job order costing system that allocates estimated overhead as 40% of prime costs. What is the cost of a job that required direct materials of $2,000 and direct labor of $5,200
Answers
Answer:
$10,080
Explanation:
The computation of the cost of the job is shown below:
We know that
prime cost = direct material + Direct labor
= $2,000 + $5,200
= $,7200
Now overhead is
= 40% of $7200
= $2,880
And,
Cost of job = direct material + Direct labor + overhead
= $2,000 + $5,200 + $2,880
= $10,080
g For a closed economy, when net capital outflow is measured along the horizontal axis and the real interest rate is measured along the vertical axis, net capital outflow is drawn as a: Group of answer choices line that slopes up and to the right. horizontal line at the world real interest rate. line that slopes down and to the right. vertical line at 0.
Answers
Answer: vertical line at 0.
Explanation:
In a closed economy, investments from other countries do not come in and the country does not invest in other countries. This means that capital is neither flowing in nor out.
Net capita outflow is the difference between capital flowing in and capital that is flowing out. If there is no capital flowing in nor out then net capital outflow will be 0. On the graph described, net capital outflow will therefore be zero for all real interest rates which will create a vertical line at 0.
Howard Inc. had prepaid rent of $79,000 and $88,000 at the end of Year 1 and Year 2, respectively. During Year 2, Howard recorded $244,000 in rent expense in its income statement. Cash outflows for rent in Year 2 were:
Answers
Answer:
the Cash outflows for rent in Year 2 is $253,000
Explanation:
The computation of the Cash outflows for rent in Year 2 is shown below:
Prepaid rent at year 2 $88,000
Add: rent expense $244,000
Less: prepaid rent in year 1 -$79,000
Cash outflows for rent in year 2 $253,000
Hence, the Cash outflows for rent in Year 2 is $253,000
Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Paid rent for the month, $4,300. 3. Paid advertising expense, $2,750. 5. Paid cash for supplies, $1,180. 6. Purchased office equipment on account, $18,100. 12. Received cash from customers on account, $5,900. 20. Paid creditor on account, $1,730. 27. Paid cash for miscellaneous expenses, $750. 30. Paid telephone bill for the month, $280. 31. Fees earned and billed to customers for the month, $39,300. 31. Paid electricity bill for the month, $470. 31. Paid dividends, $3,000.
Answers
Answer:
Date Accounts title Debit$ Credit$
1-Oct Rent expense Account 4300
Cash account 4300
3-Oct Advertisement expense 2760
Cash account 2760
5-Oct Supplies Account 1180
Cash account 1180
6-Oct Office equipment Account 18100
Accounts payable 18100
10-Oct Cash account 5900
Accounts receivable 5900
15-Oct Accounts payable 1730
Cash account 1730
27-Oct Misc expense Account 750
Cash account 750
30-Oct Utility expense Account 280
Cash account 280
31-Oct Accounts receivable Account 39300
Service revenue 39300
31-Oct Utility expense Account 470
Cash account 470
31-Oct Jason payne, Drawings 3000
Cash account 3000
Suppose that on March 16, 2019, a marble statue handmade in Canada is priced at CAD 1,700. The approximate U.S. dollar price of the statue would be .
Answers
Answer: $1,443.81
Explanation:
The exchange rate is CAD 1 = US$0.8493
If a statue is priced at CAD 1,700, in American dollars it would be:
= Canadian dollar * Exchange rate
= 1,700 * 0.8493
= $1,443.81
How to evaluate the creditworthiness of customers both individual consumers and business customers?
Answers
Answer:
Here are six ways to determine creditworthiness of potential customers.Assess a Company's Financial Health with Big Data. ..Review a Businesses' Credit Score by Running a Credit Report. ...Ask for References. ..check the Businesses' Financial Standings. ...Calculate the Company's Debt-to-Income Ratio. ...Investigate Regional Trade Risk.Explanation:
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Answer:
The three most commonly used credit reporting agencies that measure creditworthiness are Experian, TransUnion, and Equifax.
Credit helps you purchase a home, lease a car, rent an apartment, etc. Credit is very important, but also very dangerous. Mistakes you make will have a lasting impact that will stay on your credit report for years. NEVER max out a credit card, it will greatly impact your score and any future loans you need for the next several years following the max out.
Credit, in my experience and opinion, is really for lenders to see how responsible of a spender you are.
Explanation:
My answer for Plato
The cost of land includes all of the following except:___.
a. cost of leveling and grading.
b. payments to clear liens.
c. purchase price.
d. cost of fencing and lighting.
Answers
Answer:
The answer is D.
Explanation:
The correct option is D. -The cost of fencing and lighting is not part of the cost of land. Why? - Because this is the cost to improve land.
Option A is wrong. Cost of levelling and grading is part of the cost of land
Option C is wrong. Purchase price is the main cost in the determining the cost of land
Option D is also wrong
When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products that company is using
Answers
Answer: Absorption costing
Explanation:
Absorption costing believes that all costs that went into the production of a good or service should be absorbed by/ apportioned to those same goods and services regardless of if the costs are direct or indirect.
It works by first assigning the direct costs such as labor and material and then it apportions the indirect costs such as the variable and fixed manufacturing overhead costs. Absorption costing is the preferred costing method for presenting financial statements outside the company by both IFRS and U.S. GAAP.
What are the hours of operation (local standard time) of the Cascade Approach/Departure Control when flying into Medford Airport
Answers
Answer:
The answer is "0600 - 2330".
Explanation:
Alaska Airlines, allegiant, Union, and Delta are airports that service MFR. Flights to Seattle, San Francisco, Salt Lake City, Oregon, San Francisco, & Portland are provided by those airlines. The Cascades Approach/Departure Management requires 0600 - 2330 hours of operation (local standard time) while flying to Medford Airport.
If you could invent something what would it be
Answers
Cooling beds and pillows in warm nights. ...
Snooze button for kids. ...
Instant cooling machine. ...
Locator for missing things. ...
Robot house help. ...
Dream store. ...
Undang Undang terkait pencegahan dan
pemberantasan tindak pidana pencucian
uang diatur dalam ....
O UU Nomor 9 tahun 2013
O UU Nomor 9 tahun 2010
UU Nomor 8 tahun 2010
UU Nomor 8 tahun 2013
Answers
What is the effective annual interest rate of an investment that pays 14.75% per year with a compound frequency n= 2? (Answer percentage rounded to second decimal place).
Answers
Answer:
15.29%
Explanation:
r = Interest rate = 14.75%
m = Number of times compounding in a year = 2
Effective Annual Rate = (1 + r/m)^m - 1
Effective Annual Rate = (1 + 0.1475/2)^2 - 1
Effective Annual Rate = 1.07375^2 - 1
Effective Annual Rate = 1.1529390625 - 1
Effective Annual Rate = 0.1529391
Effective Annual Rate = 15.29%
So, the effective annual interest rate of the investment is 15.29%
Name two of the organizations that are involved in standards or installation requirements for home automation systems:
Answers
Answer:
American National Standards Institute
Institute of Electrical and Electronics Engineers
Explanation:
The American National Standards Institute oversees the standardization of products, systems, and services in the United States as well as the harmonization of these standards with those obtainable in other countries. They also accredit the standards developed by other standards organizations.
The Institute of Electrical and Electronics Engineers makes educational contributions to the advancement and development of standards and installation systems. It is a merger of the American Institute of Electrical Engineers and the Institute of Radio Engineers.
Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options). Suppose the investor constructed a covered call. At expiration the stock price is $27. What is the investor's profit
Answers
Answer:
-$11
Explanation:
Covered Call involves Buy stocks and Sell call options
Earning $2.89 by selling call. So, at stock price of $27, the payoff from options is $2.89 per option
Options Profits = $2.89 * 100
Options Profits = $289
Profit of stock = ($27 - $30) * 100
Profit of stock = -$300
Investor Net Profit = Profit of stock + Options Profits
Investor Net Profit = -$300 + $289
Investor Net Profit = -$11
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
Units Produced Total Costs 101,500 $28,022,500 118,500 30,997,500 131,500 33,272,500
a. Determine the variable cost per unit and the total fixed cost.
Variable cost (Round to two decimal places.) $ per unit
Total fixed cost $
b. Based on part (a), estimate the total cost for 115,000 units of production.
Total cost for 115,000 units $
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Units Produced Total Costs
101,500 $28,022,500
118,500 30,997,500
131,500 33,272,500
To calculate the fixed and variable costs, we need to use the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (33,272,500 - 28,022,500 ) / (131,500 - 101,500)
Variable cost per unit= $175
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 33,272,500 - (175*131,500)
Fixed costs= $10,260,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 28,022,500 - (175*101,500)
Fixed costs= $10,260,000
Now, the total cost for 115,000 units:
Total cost= 10,260,000 + 175*115,000
Total cost= $30,385,000
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows:
Cash $48,000 Liabilities $36,000
Noncash assets 135,000 Alex, capital 94,500
Bess, capital 52,500
Total assets 183,000 Total liabilities and capital $ 183,000
Part A: Prepare journal entries for the following transactions:
Distributed safe cash payments to the partners.
Paid $21,600 of the partnership's liabilities.
Sold noncash assets for $147,000.
Distributed safe cash payments to the partners.
Paid remaining partnership liabilities of $14,400.
Paid $4,100 in liquidation expenses; no further expenses will be incurred.
Distributed remaining cash held by the business to the partners.
Part B: Prepare a final statement of partnership liquidation.
Answers
Answer:
Alex and Bess Partnership
Part A: Step-by-step Distribution:
Cash Noncash assets Liabilities Alex Bess
December 31 $48,000 $135,000 $36,000 $94,500 $52,500
Safe cash
distribution (26,400) 0 0 (18,480) (7,920)
1st Liabilities (21,600) 0 (21,600) 0 0
Sale of noncash 147,000 (135,000) 8,400 3,600
Safe cash distrib. (100,000) (70,000) (30,000)
Final liabilities (14,400) 0 (14,400) 0 0
Liquidation expense (4,100) 0 (2,870) (1,230)
Final distribution (28,500) 0 (11,550) (16,950)
Part B: Final Statement of Partnership Liquidation:
Cash Noncash assets Liabilities Alex Bess
December 31 $48,000 $135,000 $36,000 $94,500 $52,500
Sale of noncash 147,000 (135,000) 8,400 3,600
Payment of liabilities (36,000) (36,000)
Liquidation expenses (4,100) 0 (2,870) (1,230)
Distribution (154,900) 0 0 (100,030) (54,870)
Explanation:
a) Data and Calculations:
Profits and losses sharing ratio = 70:30
Estimated liquidation expenses = $5,500
Balance Sheet at Liquidation Date:
Cash $48,000 Liabilities $36,000
Noncash assets 135,000 Alex, capital 94,500
Bess, capital 52,500
Total assets 183,000 Total liabilities and capital $ 183,000
A network externality occurs when: Select one: A. there is production cost savings from being networked with suppliers B. the usefulness of a good is affected by how many others use the good C. the usefulness of a good is affected by celebrities who use the good D. there is production cost savings from being networked with buyers. Clear my choice Previous page
Answers
Answer:
B
Explanation:
Freddy offers to supply water bottles to Jerry’s Gym at a cost of $40a case. The signed contract says that Jerry’s Gym will buy one case of water a month for 12 months. Three months into the contract, Freddy calls Jerry And tells Jerry that the price has gone up to $70a month because Freddy’s product is in such high demand. Jerry refuses to pay. Jerry finds a new supplier, Wally, who will provide one case of water for 9 months at a cost of $50a case. Jerry sues Freddy for breach of contract. What type of damages is Jerry’s Gym entitled to and how much money does Freddy have to pay Jerry’s Gym
Answers
Answer:
-jerry is entitled to monetary damages compensations due to a contract breach.
-Freddy has to pay Jerry $90
Explanation:
the damage that the gym is entitled to would be that of a contract breach. Freddy wanted to earn more money so he breached the contract. Now given that Jerry had to go with another supplier of water at a greater cost of 50 dollars for 9 months, just to satisfy his requirements. Freddy has to pay him monetary damages for this breach in contract. he has to pay the difference that exists between the price in the contract they had and what jerry now has to pay due to the breach. The difference is 10 dollars, which is to be paid every month for 9 months
= (50 - 40)*9
= 10 * 9 = $90
The model of competitive markets relies on these three core assumptions:
1. There must be many buyers and sellers-a few players can't dominate the market.
2. Firms must produce an identical product-buyers must regard all sellers' products as equivalent.
3. Firms and resources must be fully mobile, allowing for free entry into and exit from the industry.
The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry.
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.
Scenario Competitive
1. Several stores in the mall sell hooded sweatshirts. Each store's sweatshirts reflect the style of that particular store. Additionally, some stores use higher-quality cotton than others, which is reflected in the apparel's prices.
2. In a small town, there are two providers of broadband Internet access: a cable company and the phone company.
The Internet access offered by both providers is of the same speed.
3. There are hundreds of high school students in need of algebra tutoring services in Dallas.
4. Dozens of companies offer tutoring services, and the parents who seek out tutors view the quality of the tutoring at the different companies to be largely the same.
5. The government has granted a patent to a pharmaceutical company for an experimental AIDS drug. That company is the only firm permitted to sell the drug.
Answers
Answer:
Following are the solution to the given points:
Explanation:
For point 1:
No, not the same thing Because the product is not the same, the marketplace is monopolistic and not completely competitive.
For point 2:
No, not a bunch of salespeople Because the product is the same any maker wishes to enter into the market, the competitive market also does not mean that only two vendors and not so many sellers present in the market.
For point 3 and 4:
Yes, it is aggressive algebra upon on market Same students and several teaching qualities everywhere.
For point 5:
No, no free admissionm, it was not a regulated business. The rationale would be that the entrance to the market via patent rights is restrained by the state.
