The Florida Department of Agriculture & Consumer Services is investigating two proposals for increasing the capacity of the drainage canal in an agricultural region. i) Proposal A requires removing weeds and sediment that have accumulated during previous years. The dredging equipment costs $660,000 to purchase. The equipment is expected to have a 10-year life with a $8,000 salvage value. The annual operating costs are estimated to be $60,000. To control weeds in the canal, an additional $160,000 is required per year for the weed control program. ii) Proposal B is to line the canal with concrete at an initial cost of $5.6 million. The lining is assumed to be permanent, but maintenance will be required at a cost of $1,800 each year. In addition, lining repairs will be made every 5 years at a cost of $16,000. Compare the alternative using the EUAW with an interest rate of 5% per year. State which is the better al ternative and provide one sentence explaining why.

Which of the following best explains cost-push inflation? a. increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. b. consumers demand goods faster than they can be supplied, increasing competition among buyers. c. rising prices for goods and services reduce spending power and cut into consumer demand. d. wages drop so that workers have to spend a higher percentage of income on the cost of necessities.2b2t

Janis owns and operates a store in a country experiencing a high rate of inflation. in order to prevent the value of money in her cash register from falling too quickly, janis sends an employee to the bank four times per day to make deposits in a interest-bearing account that protects the store's revenues from the effects of inflation. this is an example of the (menu costs/ unit of account costs/ shoesleather costs) of inflation. pick one

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.