ASSIGNMENT No. 1 ECONOMIC ANALYSIS -522- SPRING 2010 Q. 1 DISCUSS IN DETAIL THE TERM ECONOMIC RESOURCES WITH REFERENCE TO SERVICE INDUSTRY. EXPLAIN THE LINK BETWEEN SCARCITY‚ CHOICE AND OPPORTUNITY COST. Ans: ECONOMIC RESOURCES are the assets (things of value) which an economy (or business) may have available to supply and produce goods and services to meet the ever-changing needs and wants of individuals (in the case of a business) and society (in the case of society as a whole.) REA (Resources
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potentially increasing sales as well. The assumption would be the plastic rings are produced by the time the rings wear out. Hans would then have to deal with the total cost of two rings ($279.65 + $1107.90 = $1387.55 per hundred). In this scenario Hans would be face with a net loss of $37.55 ($1387.55 - $1350 = $37.55) since the two combined cost are over the selling price of $1350 per hundred rings. The net loss of $37.55 would be significantly less than trying to sell the units that will soon be obsolete
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relevant to the decision. The table below shows the NPV for the two product lines given discount rates of 7.7% (low risk)‚ 8.4% (medium risk)‚ and 9.0% (high risk). The Match My Doll Clothing line is currently rated as a medium risk project with 8.4% cost of capital. Given Emily’s knowledge of the industry we may be able to accept this; however‚ the firm should also consider whether children’s clothing lies within their core competencies and how different the market is from their current market for
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definition of opportunity cost‚ the more alternatives that we have given up in undertaking an action‚ the higher the opportunity cost.” Please comment on this statement and explain your answers using examples. Ans Opportunity cost of an action refers to the value of the best alternative that must be given up in order to undertake that action. That is‚ the highest-valued option forgone. The statement in the question is uncertain and is determined by situation‚ because the opportunity cost is the value
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change management that focuses on increasing levels of commitment to change and decreasing levels of resistance. Our group perceived the ‘Global Tech Change Simulation’ to be reflective of real life organizational change as it recreated a business scenario that needed to follow a multi-step process in a timely and sequential manner in order to have a successful outcome. There are challenging barriers to change which include acceptance‚ adaption and resistance‚ and each obstacle requires the use of
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analyzed. It also identifies the possible opportunities and alternatives being evaluated. 3. Factors or Costs - This section describes and identifies factors or costs that will influence the analysis of the questions. This section also includes factors and costs that may seem important (and are important for other questions) and explain why they are not important to this question. For this course‚ you may limit yourself to the ten most important factors or costs (you should have at least this many)
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buy or continue to make the small fitting. Manufacturing cost - $ 1.00 per unit Buying price - $ 0.82 per unit Fixed cost (cannot be eliminate) - $ 0.20 per unit Total unit (Small Fitting) - 460 000 units Make Buy Net Income Manufacturing Cost $460 000 $ 460 000 Purchase $377 200 $ (377 200) Fixed Cost Not Eliminated $ 92 000 $ (92 000) Total Annual Cost $ 460 000 $ 469 200 (9200) b) (1) What is Waterways opportunity cost if it choose to buy the small fitting and start manufacturing
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a. Terra Cotta Designs Schedule of Cost of Goods Manufactured For the Year Ended December 31‚ 2011 Beginning balance in work in process $ 600‚000 Add current manufacturing costs: Direct material: Beginning balance $ 400‚000 Purchases 1‚000‚000 Ending balance (200‚000) $1‚200‚000 Direct labor 2‚100‚000 Manufacturing Overhead 600‚000 3‚900‚000 Total 4‚500‚000 Less ending balance in work in process 350‚000 Cost of goods manufactured $4‚150‚000 b
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Essay explaining the quantities of goods and services that we can produce with limited available resources The fundamental problem of economics is scarcity meaning economic resources are insufficient to meet the daily needs and wants of the individuals. Economic resources refer to the factors of production‚ which includes the following Natural Resources‚ Labour‚ capital and Entrepreneurship. The scarcity of resources is fundamental to economics. There are not enough resources to meet the needs
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Agenda – Submit term projects to TURNITIN ASAP – Assignment #2 due April 1st 1159pm • List the coauthor’s name in the subject line. • Teaching Evaluation • Transfer pricing (cont.) – Stanco Inc. • Review chapters 11 and 12 & the practice final – Practice Q1 and Q2 • Review chapters 8 and 9 and the practice final – Practice Q3 and Q4 ACTG 2020 Week 11 1 • Online Course Evaluations (ONCE)/ & Seymour Schulich Teaching Excellence Awards (Schulich TEA) – TEA: http://schulich.yorku.ca/tea. – ONCE:
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