For each numbered Statment, pick the lettered Cost Term that fits Statements:

(1.) Increased revenues from special order

(2.) Lost contribution margin from foregone sales to regular customers

(3.) Revenues from 4,000 units sold to regular customers

(4.) Variable cost of 4,000 units sold to regular customers

(5.) Increase in fixed selling and administrative expenses

(6.) Cost of existing equipment used to produce special order

(7.) Salary paid to current supervisor who oversees manufacture of special order

(8.) Increased variable costs of special order

Cost Term Choices:

a) Irrelevant fixed outlay cost

b) Irrelevant revenues

c) Irrelevant variable outlay cost

d) Opportunity cost

e) Relevant fixed outlay cost

f) Relevant revenues

g) Relevant variable outlay costs

h) Sunk Cost

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )

What’s the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? $4,750 $5,000 $5,250 $5,513 $5,788what is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. draw a time line. $7,917 $8,333 $8,772 $9,233 $9,695