Ask Question
BusinessBusiness
3 October, 01:01

Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. What is Christine's annual opportunity cost of the financial capital that she invested in her business

+1
Answers (1)
  1. 3 October, 01:16
    0
    Christine's annual opportunity cost of the financial capital that she invested in her business is $50

    Explanation:

    Opportunity costs are all those losses which are faced for choosing an alternative like loss of interest income in case of investment in the business.

    In this question, the opportunity cost for Christine is the loss of interest income from the investment in the saving account in case of investment in the business.

    Investment = $5,000

    Interest Income = 1% of Investment = $5,000 x 1% = $50

    Opportunity cost is $50.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
During the prior fiscal year, Cullumber Corp. signed a long-term noncancellable purchase commitment with its primary supplier to purchase $1.78 million of raw materials. Cullumber paid the $1.
Answers (1)
You have $12,949.72 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $220.000. You expect to earn 12% annually on the account.
Answers (1)
The need for strategy to fit a firm's environment and how this creates value
Answers (1)
is the ability of a product to satisfy a customer.
Answers (2)
Rite Shoes was involved in the transactions described below. Journal each transaction. If an entry is not required, state "No Entry." A) Purchased $8,200 of supplies on account. B) Paid weekly salaries, $920.
Answers (1)
New Questions in Business
When builders were constructing a sidewalk they forgot to include an expansion joint between two of the?
Answers (1)
Included in Waterway Company's December 31, 2017, trial balance are the following accounts: Accounts Payable $221,600, Pension Liability $384,400, Discount on Bonds Payable $32,700, Unearned Rent Revenue $41,100, Bonds Payable $400,600, Salaries and
Answers (1)
The law of increasing opportunity costs is a result of the fact that: a. A) the value of the dollar has declined over time. b. B) wage rates rise as the economy reaches full employment. c.
Answers (1)
A company has beginning inventory of 11 units at a cost of $29 each on February 1. On February 3, it purchases 39 units at $31 each. 17 units are sold on February 5.
Answers (1)
Suppose that a rap grouprap group called RG 2RG2 has released its first CD with LiveLive Records at an intended list price of $14.99. Music stores have discovered that they can markup the price to $17.99 with continued strong sales.
Answers (1)
Home » Business » Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest.
Sign Up Forgot Password?