Finance Answers

7. Tempo Electronics, Inc., has an inventory of 5,000 unique electronic chip originally purchased at $2.50 each; their market value is now $ 5 each. The production department has proposed to use these by putting each one together with $6 worth of labor and other materials to produce a wristwatch that would be sold for $10. Should that proposal be implemented? Explain from the viewpoints of economic profit and opportunity costs.

6. Sharon Smith is a full-time homemaker and also is an excellent seamstress. She has material for which she paid $5 per yard several years ago. The material has increased in value during that time and could be sold back to the local fabric shop for $15 per yard. Sharon is considering the use of that material to make dresses that she would sell to her friends and neighbors. She estimates that each dress would require four yard of materials and four hours of her time, which she values at $10 per hour. If the dress could be sold for $90 a piece, could Sharon earn an economic profit by making and selling the dresses?

Given the total revenue function TR = 50Q - 0.5 Q2

and the total cost function TC = 2000 + 200Q - 0.2Q2 + 0.001Q3

Find the marginal revenue and the marginal cost functions

Consider a world in which there are only two goods. An individual has an income of $9,000, the price of deodorant is $3 per bottle, and the price of mouthwash is $2 per bottle.



i) Expressing deodorant as the dependent variable, where the equation for the budget constraint.

ii) What is the slope of the budget constraint?

iii) If the price of mouthwash increases to $4, write the new equation for the budget constraint.

A recent engineering graduate turns down a job offer of $30,000 per year to start his own business. He will invest $50,000 of his own money that has been in a bank account earning 7 percent in interest per year. He also plans to use a building he owns that has been rented to another business for $1,500 per month. Revenue during the first year was $107,000, while expenses were:
2 Advertising $ 5,000 Rent 10,000 Taxes 5,000 Employees’ salaries 40,000 Supplies 5,000 Prepare two income statements, one using the traditional accounting approach and one using the opportunity cost approach to determine profit

Karagiri is a Pune based startup that works with 800 families across India. The startup
is in the business of handloom saris. They converted the pandemic period in to an
opportunity. The business owners realized that accounting is essential to permit
informed judgements and decisions by the user of accounts. In the light of given
definition of accounting, discuss about users and uses of accounting information

Mr. Kohli is planning to invest in the share market. He wants to study the Balance
Sheet of Amul Industries. He wants your guidance in finding the various elements of
the Balance Sheet of Amul Industries. Kindly discuss the same

Jimmy hopes that the money from his retirement funds plus what he makes on the sale of his current house when he is 65, will be enough to allow him to buy the retirement home. Can this goal be realized?

The face value for WICB Limited bonds is $250,000 and has a 6 percent annual coupon. The 6 percent annual coupon bonds matures in 2035, and it is now 2020. Interest on these bonds is paid annually on December 31 of each year, and new annual coupon bonds with similar risk and maturity are currently yielding 10 percent. How much should Karen sell her bonds today?