Business, 27.06.2019 21:20 tsunommygames

Betty runs a cookie shop where she sells cookies for $1 each. she employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. her costs of equipment and raw materials add up to $75,000. her business ability is legendary, and other companies have offered to pay betty $100,000 to come to work for them. she also knows she could sell her cookie shop for $150,000. the bank in town pays an annual interest rate of 3% on all funds deposited with it. betty's implicit and explicit costs are equal to:
a. $80,000.
b. $184,500.
c. $100,000.
d. $204,500.

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answer; planning;

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

Answer from: Quest

Answera type of question that is legally permissible in a job interview because it focuses on job related factors;

Answer from: Quest

Increase, because the supply of pork will decrease.

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Betty runs a cookie shop where she sells cookies for $1 each. she employs five people, each of whom...

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