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Q. Suppose that your tuition ( ) to attend college is JD 1,500 per year and you spend JD 1,000 per year on books and transportation. If you were working full time instead of attending college, you could earn JD 4,000 per year. What is your opportunity cost of attending college for 4 years?

Q. Suppose that your tuition ( ) to attend college is JD 1,500 per year and you spend JD 1,000 per year on books and transportation. If you were working full time instead of attending college, you could earn JD 4,000 per year. What is your opportunity cost of attending college for 4 years?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q. Suppose that your tuition (lall eg) to attend college is JD 1,500 per year and you spend JD 1,000 per year on books and transportation. If you were working full time instead of attending college, you could earn JD 4,000 per year. What is your opportunity cost of attending college for 4 years? Q. Ahmad owns a factory that produces car tires ( ll LI). Ahmad is thinking to change his production line to produce chairs. Your task is to help Ahmad decide whether to keep producing car tires or change his production line to produce chairs. The following information is necessary to reach a conclusion: Ahmad yearly profit from producing car tires is $200,000. Ahmad can earn 8% revenue if he deposits money in the bank. The cost of installing the chair production line is $700,000. If Ahmad decides to produce chairs, he can sell the machines for car tire for $1,500,000. Ahmad yearly profit from producing chair is $150,000.
Transcribed Image Text:Q. Suppose that your tuition (lall eg) to attend college is JD 1,500 per year and you spend JD 1,000 per year on books and transportation. If you were working full time instead of attending college, you could earn JD 4,000 per year. What is your opportunity cost of attending college for 4 years? Q. Ahmad owns a factory that produces car tires ( ll LI). Ahmad is thinking to change his production line to produce chairs. Your task is to help Ahmad decide whether to keep producing car tires or change his production line to produce chairs. The following information is necessary to reach a conclusion: Ahmad yearly profit from producing car tires is $200,000. Ahmad can earn 8% revenue if he deposits money in the bank. The cost of installing the chair production line is $700,000. If Ahmad decides to produce chairs, he can sell the machines for car tire for $1,500,000. Ahmad yearly profit from producing chair is $150,000.
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