Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost. The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good. To determine: The comparison of cost and benefit in different units and goods.

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Answer 1

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q1 Q2 Q3 Sales $ 125 $ 145 $ 165 Q4 $ 195 Sales for the first quarter of the following year are projected at $140 million. Accounts receivable at the beginning of the year were $55 million. Wildcat has a 45-day collection period. Wildcat's purchases from suppliers in a quarter are equal to 45 percent of the next quarter's forecast sales, and suppliers are normally paid in 36 days. Wages, taxes, and other expenses run about 20 percent of sales. Interest and dividends are $10 million per quarter. Wildcat plans a major capital outlay in the second quarter of $81 million. Finally, the company started the year with a cash balance of $70 million and wishes to maintain a $30 million minimum balance. a. Complete the following cash budget for Wildcat, Incorporated. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in millions,…

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Answer 2

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Answer 3

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Answer 4

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Answer 5

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

Answer 6

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

Answer 7

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Answer 8

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.