<span>The opportunity cost is $8 for buying the dozen donuts. Even though the prices are the same, there is still the cost of the foregone entertainment that will not be enjoyed because of the purchase of the donuts. Had the donuts not been purchased, one would have gone to see the movie, and now this will not happen due to the donut purchase.</span>
Answer:
None of the multiple choices is correct. The correct answer should be: "Business profit will increase by $12,000 per year"
Explanation:
$12,000 per year is the rental rate.
If his Uncle Fred gives him the building, George will not pay the rental fee. Thus, the business profit will increase by $12,000 per year.
If we consider about the economic profit or implicit cost, it will not change.
Answer:
Empowering management style
Explanation:
In simple words, Empowerment relates to the idea in managing that if workers are provided knowledge, support and opportunities while at the identical moment being kept accountable for certain job performance, so they should be more efficient and have greater job fulfillment.
Empowerment is focused on the idea that it represents the willingness of workers to take over more responsibilities. Transformation managers are creating a community that appears motivated and self-directed
Answer:
B) 5 percent decrease in quantity demanded.
Explanation:
The price elasticity of demand is defined as the ratio of the percentage change in quantity demanded to the percentage change in price.
Given:
Price elasticity of demand, e = 0.5
Change in price, p = 10%
e = change in quantity demanded, q/change in price, p
q = 0.5 × 10
= 5 %
Change in quantity demanded, q = 5%
Answer:
Current asset(Inventory)/ Asset will be overstated by $11,080. Also, the owners equity (by virtue of the net income) will also be over stated by $11,080.
Explanation:
The overstatement of year end inventory results in the understatement of cost of goods sold which in turn results in an overstatement of the net income.
Hence if Fonda incorrectly counted its inventory as $277,020 instead of the correct amount of $265,940, inventory will be overstated by
= $277,020 - $265,940
= $11,080
This means that the current assets (inventory) would be overstated by $11,080. Also, the owners equity (by virtue of the net income) will also be over stated by $11,080.