Trade-offs between the ______ and the future require weighing the _____ available today against what will be available tomorrow. A good produced for present ______ is a ______ good; a good that will help in the production of other valuable goods for the _____ is a ______ good.

Answer:

Option (b) is correct.

Explanation:

Inflation rate refers to the rate at which the prices of goods and services are increased.

Inflation rate:

= Percentage Change in Consumer Price Index

= (100 - 110) ÷ 110

= - 10 ÷ 110

= - 0.0909, or - 9.09%

So, this is a Deflation of 9.09% (9.1%), and a deflation means that value of money has increased.

Answer:

The correct answer is letter "A": True.

Explanation:

Central banks are the financial institutions in charge of the monetary policy of their country on behalf of the central government. They regulate the money supply and the interest rates to maintain a country's economy the closest to its equilibrium level. In the United States, the central bank is the Federal Reserve (Fed). Central banks also collect and replace the currency in circulation.

Answer:

IRR = 25%

Explanation:

See the image below to get your answer.

Explanation: The question has a missing information for which Internal rate of return might change.

There was a cash flow in 2012 and then there was a cash flow in 2014. So, there was no cash flow in 2013. Whenever we have to find the IRR or NPV, we need each year's cash flow. Therefore, we have added 2013 cash flow as "0". With the help of excel, it is easy to find Internal rate of return. Just follow the image, you will find it easier.

Answer:

The company's income statement would report Sales Revenue of $13 million

Explanation:

The journal entry for the transaction will be

==================================================================

         Particulars                                 Debit                     Credit

==================================================================

        Cash                                      $8.50 million          

        Accounts receivable            $4.50 million

   ( 13.5 million - 8.50 million)

        Sales revenue                                                         $13 million

==================================================================

hence,

The company's income statement would report Sales Revenue of $13 million

Final answer:

Under the accrual basis of accounting, the WeBuild Construction Company would report Sales Revenue of $13 million for the buildings sold and Accounts Receivable of $4.50 million for the yet-to-be-received payments on the income statement.

Explanation:

The question is about how to report transactions on an income statement under the accrual basis of accounting. When WeBuild Construction Company sold buildings totaling $13 million and received payments of only $8.50 million, the correct approach is to report Sales Revenue of $13 million. This is because under the accrual accounting method, revenue is recognized when earned, regardless of when cash payments are received. The remaining $4.50 million, which is the difference between sales and payments received, would be reported as Accounts Receivable, indicating the amount of cash that is expected to be collected in the future.

Accounts Receivable represents the money owed to a company by its customers for products or services provided on credit. In this case, the correct choice for the income statement would be Sales Revenue of $13 million as this figure represents the total amount of sales made by the company.

Answer:

7% per year

Explanation:

The amount invested in the calculator was $400. The future value after six years is $600. That rate of return that results in this investment is determined by:

[tex]FV = PV*(1+r)^t\\600=400*(1+r)^6\\1+r = \sqrt[6]{1.5}\\r=0.07 = 7\%[/tex]

The rate of return on the invest is roughly 7% per year.

Answer:

PVxa = $27,132.00, PVya = $26,413.00,

Explanation:

Present value (PV) is the value of the future expected cash flow. PV rests on the idea that the worth of a cash received is more than that of the cash promised to be received in the future. To calculate PV a stream of incomes to be received a number of period in the future, the following formula is used:

[tex]PV = C[\frac{1-(1+r)^{-n} }{r} ][/tex]

Where PV = present value

C = cash flow amount from the investment

r = discount rate

n = number of period, in this case years, to receive the cash flow.

The PV formula above is therefore employed to answer the question as follows:

Answer to question (a)

For Investment X in question (a)

PVxa = $4,200 * {[1-(1+r)^-n]/r}

PVxa = $4,200 * {[1-(1+0.05)^-8]/0.05}

PVxa = $4,200 * 6.463212759

PVxa = $27,145.49      

For Investment Y in question (a)

PVya = $6,100*{[1-(1+r)^-n]/r}

PVya = $6,100*{[1-(1+0.05)^-5]/0.05}

PVya = $6,100 * 4.329476671

PVya = $26,409.81  

Answer to question (b)

For Investment X in question (b)

PVxb = $4,200 * {[1-(1+r)^-n]/r}

PVxb = $4,200 * {[1-(1+0.15)^-8]/0.15}

PVxb = $4,200 * 4.487321508

PVxb = $18,846.75  

For Investment Y in question (b)

PVyb = $6,100*{[1-(1+r)^-n]/r}

PVyb = $6,100*{[1-(1+0.15)^-5]/0.15}

PVyb = $6,100 * 3.352155098

PVyb = $20,448.15  

Where PVxa, PVya, PVxb and PVyb represents PV for X and Y in questions (a) and (b).

Decisions:

1. In question (a) part where the PV of $27,145.49 of X is greater than $26,409.81 of investment Y, it is better to invest on investment X.

2. In question (b) part where the PV of $20,448.15 of Y is now greater than $18,846.75 of investment X, it is better to invest on investment Y.

The present value of Investment X at a 5% and 15% discount rate is $28,353.03 and $17,276.08 respectively, while Investment Y at the same rates is $26,320.73 and $18,716.64. The chosen discount rate significantly influences these present values.

The subject of this question is present value calculation for investments, which falls under business, specifically financial management or economics. We start by using the present value formula for an annuity: PV = Pmt *[1 - (1 + r)^-n] / r, where PV is the present value, Pmt is the payment received each period, r is the discount rate, and n is the number of periods.

Part a: If the discount rate is 5%, the present value for Investment X is 4200 *[1 - (1 + 0.05)^-8] / 0.05 = $28,353.03 and for Investment Y is 6100 *[1 - (1 + 0.05)^-5] / 0.05 = $26,320.73.

Part b: If the discount rate is 15%, the present value for Investment X is 4200 *[1 - (1 + 0.15)^-8] / 0.15 = $17,276.08 and for Investment Y is 6100 *[1 - (1 + 0.15)^-5] / 0.15 = $18,716.64.

In conclusion, different discount rates will affect the present value of investments. A higher discount rate will result in a lower present value, all else being equal.

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Answer:

D

Explanation:

According to an article published on modernhealthcare.com on Feb-2019, around 33% of total health care spending goes to hospital care. 33% calculates as to one-third of total health care spending portion.

Answer:

The effect shall be an understatement of expenses and overstatement of net income. The impact shall be $ 4,350.  

Explanation:

The expired portion of prepaid insurance i.e 6 months from July 01 to year end needs to be adjusted. The adjustment amount shall be $ 4,350. calculated as under:

Prepaid Insurance $ 17,400

Period of benefit 24 months.

Adjustment for prepayment : 17400/24*6 = $ 4,350

The effect of not passing the entry would be an understatement of expenses and overstatement of net income

Answer:

Explanation:

(SP-VC)*Q

$(8-6)Q = $5500

Q=5500/2

Break even quantity = 2750 units per month

2. Sales = $8 x 2750 = $ 22,000

Answer:

option A  

Explanation:

Throughout financial accounting, the cash flow statement, also recognized as a cash flow statement, is indeed refers to a financial statement demonstrating how adjustments throughout balance sheet balances and sales impact cash balances and splits the report in grouping of Operating activities, financing activities and investing activities.

Particularly, the cash flow report deals with cash flow into and out of the corporation. As an academic discipline, the cash flow statement is helpful in determining a corporation's brief-term competitiveness, especially the capacity to pay expenditures.

Answer:

Part A:

Workers Needed=20.833≅21

Part B:

Productivity of individual worker=2.0833 parts/hour

Part C:

Multifactor productivity=0.0832 Parts/$

Explanation:

Part A:

Total parts =100,000

Workers needed= Total parts/(Parts per hour* hours per shift*Total Shifts)

[tex]Worker\ needed=\frac{100000}{10\ Parts/hour*8\ hours/shift*60\ shifts/worker} \\Workers\ needed= 20.833[/tex]

Workers needed=20.833≅21

Part B:

Productivity of individual worker:

[tex]Productivity\ of\ individual\ worker=\frac{100000}{100\ workers*8\ hours/shift*60\ shifts/worker} \\Productivity\ of\ individual\ worker=2.0833\ parts/hour[/tex]

Part C:

Total cost of material= $10*100,000=$1,000,000

Capital Costl= $100,000

Total labor Cost=[tex]21\ workers*8\ hours/shift*60\ shifts/worker*\$10/hour[/tex]

Total labor Cost=$100,800

Multifactor productivity=Total Parts/(Total cost of material+capital cost+Total labor Cost)

[tex]Multifactor\ productivity=\frac{100000}{\$1,000,000+\$100,000+\$100,800} \\ Multifactor\ productivity=0.08324\ Parts/\$[/tex]

The industrial plant needs approximately 21 workers per shift to meet its demand of 100,000 parts per month. An individual worker's productivity, if the shift consists of 100 workers, is 80 parts per worker-hour. The multifactor productivity, considering material, capital, and labor costs, is 0.048 parts per dollar.

In order to answer the questions related to the industrial plant's operations, we'll need to do a few calculations. For question a, we know that there are 20 workdays in a month and that each day consists of 3 shifts of 8 hours each. That is a total of 480 hours in a month. If the plant needs to produce 100,000 parts per month and a worker can produce 10 parts per hour, we'll need 100,000 / 10 = 10,000 worker hours. Thus, since there are 480 hours in a month, the plant would need 10,000 / 480 ≈ 21 workers per shift (rounded up).

For question b, if each shift has 100 workers, and each worker can produce 10 parts per hour for 8 hours, then each worker produces 80 parts in a shift, and the 100 workers together produce 8,000 parts per shift. If we again presume 60 shifts in a month (3 shifts per day for 20 days), then 60 shifts would produce 480,000 parts, which means the productivity of an individual worker is 480,000 parts per month divided by 6,000 worker hours, or 80 parts per worker hour.

Lastly, for question c, multifactor productivity represents the output per unit of combined inputs. The combined costs of material, capital, and labor here are (10 × 100,000) + 100,000 + (10 × 21 workers × 8 hours × 20 days × 3 shifts) = 2,104,000. Therefore, the multifactor productivity is 100,000 parts / 2,104,000 = 0.048 parts per dollar.

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Answer and explanation:

In Economics, the shutdown conditions refer to the situation in which a company is not able to produce profits to at least cover the variable costs of production in the short term. According to this approach, only when those costs can be covered the company should continue to operate. Otherwise, the firm must shutdown.

In that case, if a team is losing by a score that cannot be surmountable, according to the shutdown condition the team must stop playing the game.

Answer:

Explanation:

A ) Demand for coffee may increase due to many reasons , like due to decrease in price ( due to price effect )  , increase in price of tea ( due to substitution effect) , due to seasonal change like in the cold season ,  its demand increases.

B) Supply of coffee may increase due to rise in its price , due to more company coming into market , technological improvement in plant and machinery etc.

C ) The new equilibrium price may be equal to , less than or greater than $3 each . If shift in both the lines have same magnitude , price remains stagnant . If shift in supply line is more , price decreases. If shift in demand curve is more , price increases.

Answer:

The statement is False

Explanation:

Generally speaking, the statement is false considering the demand and supply curve. In this curve, when there is increase in demand, its implies that the consumers of the notebook still derived satisfaction on it and as such the producer of the notebook produces more and supply to the market will increase so that equilibrium point will be achieved. Until when law of diminishing return set in, and the people are not deriving satisfaction again, that is when the product may not be readily available.

Again if the supply curve is vertical, that is the producer is producing and supplying at fixed rate without putting into consideration the demands in the market, there will not be corresponding increase in supply with demands which can make statement to true.

The given statement is false.

The following information should be considered:

Therefore, we can conclude that the given statement is false.

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Answer:

The correct answer is letter "D": Explanatory.

Explanation:

Explanatory research typically is carried out when preliminary research was not made successfully, is unclear or vague. Explanatory research is based on factual data -mainly numerical- that allows the researcher to support the detailed descriptions that must be reported as conclusions of the study.

A study that relies primarily on quantitative data with qualitative follow-up is an example of a quantitative-dominant mixed methods design.

A study that primarily relies on quantitative data and uses qualitative data for follow-up is considered an example of a quantitative-dominant mixed methods design. This approach effectively combines both statistical analysis and detailed contextual understanding, reflecting the evolving landscape of research methodologies that emphasize the importance of triangulation in research. Such designs demonstrate how quantitative analysis can be enriched and contextualized with qualitative insights, providing a more comprehensive understanding of the research topic.

By employing a quantitative-dominant mixed methods approach, researchers can utilize the strengths of both quantitative and qualitative data to address complex research questions. This blend allows for robust testing of theories or hypotheses with quantitative data, while qualitative data provide a deeper insight into participant experiences, adding texture and meaning to the statistical findings.

Answer:

$73,070.5

Explanation:

Inflation erodes the value of money. It makes more quantity of money to required to buy the same basket of food and services in the future.

With inflation, to calculate the the quantity of Dollars needed in n years time, we use the formula;

Inflated amount = h × (1 + f)^n

h= amount required today, f - inflation rate, n- number of years

So if Farrell needs $400,000 in 6 years time in real terms, with an inflation of 5% per year, he would need to have a quantity of money equal to

1.05^6 × 400,000 = $536,038.3.

To provide for $536,038.3  in 6 years time, he would need to contribute into a sinking fund on a yearly basis, an equal amount denoted as "A" in the formula below:

FV = A ×  ((1+r)^n  - 1)/r

FV - 536,038.3, r - 8%, n = 6

536,038.3 = A × ((1+0.08 )^(6) - 1)/0.08)

536, 038.3 = A × 7.3359

536,038.3/7.3359 = A

$73,070.5  = A

Farrell should invest at the end of every year

$73,070.5

Answer:

OPTION (e) is the right answer.

Explanation:

AFL is been expressed as a federation or service organization that unions could join and still retain their separate identities and collective bargaining firms. Because the organization did not strive to organize untrained laborers, they made few profits among new laborers around the year 1920, meanwhile, the increase of the economy took place during mass productions such as rubber, automobiles, chemicals, as well as services.

Answer:

Stock : 1, 2, 4 and  Flow : 3, 5 ,6

Explanation:

Stock is a variable that is measured at a particular point of time. Eg: Wealth at a point of time, Capital at a point of time.

Flow is a variable that is measured for a particular period of time. Eg: Income for a period of time, Investment for a period of time.

Total value of company's outstanding bonds : Stock

The number of Canadian immigrants living in US : Stock

The company's borrowings in given year by bonds : Flow

The value of a rare coin : Stock

The no. of canadians emigrating US each year : Flow

The amount by which rare coin value increases each year : Flow

Flow variables are measured over a period of time, while stock variables are measured at specific points in time. In the provided examples, the total value of a company's outstanding bonds, the number of Canadian immigrants in the US, and the value of a rare coin are stock variables. The amount a company borrows in a year, the number of Canadians emigrating to the US each year, and the increase in a coin's value annually are flow variables.

To understand whether these are flow variables or stock variables, we need to identify whether the data is measured at one specific point in time (stock) or over an interval of time (flow).

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Answer:

less;

A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. b. Externality

A single grocery store is the only source of food in a small town, giving the store the ability to influence the price of food.  a. Market power

Explanation:

Property rights are usually imposed on individuals who are able to control the resources which are of public value. When the society gets affected by the practices of those individuals or entities, property rights made by a government or regulatory body come into the picture. Therefore, those individuals need to be regulated and incentivized by property rights, or they will be less likely to conform to the market needs.

These rights protect the market from market failures, which is their main purpose.  

The most common types of market failures include externalities and market power. The first example is an externality as the unwanted smoke represents the cost (or benefit) which cannot be influenced by a specific party.

The other example is typical market power, as the monopolist (grocery store) can control the price of goods, which is an essential market determinant.

The person smoking in a restaurant causing harm to others through second-hand smoke exemplifies an 'externality' as other individuals, not involved in the action, are affected. The case of a single grocery store being the only food source in a town and thus being able to influence the price of food is an example of 'market power', where a single entity determines the price or quantity of a commodity.

In context of economic theory, the given scenarios classify two distinct forms of market failures: externality and market power.

The first scenario, where a person smoking in a restaurant creates second-hand smoke affecting other patrons, is an example of an externality. Externalities are costs or benefits that affect a third party not directly involved in the transaction. Here, the third parties (other restaurant patrons) are negatively affected by the smoker's actions, thus creating a negative externality.

In the second case, a single grocery store monopolizing food supply in a small town, indicates market power. Market power refers to the ability of a firm to control the market price or quantity of a good or service. In this scenario, the single grocery store has the power to influence the price of food, a characteristic of market power.

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Answer:

The correct answer is letter "A": economic development.

Explanation:

The Intellectual Property Rights (IPR) are the grants typically a government provides to individuals over their creations for a specific period. The provision promotes innovation within countries that have usually developed economies. These rights cover all tangible and intangible created within a territory and that could be subject to exploitation.

Answer:

Equipment = 33.33% (1/3)

Machine     = 20.00% (1/5)

Explanation:

Final answer:

The Loann Le Milling Company can take an annual depreciation of $9,333.33 on the testing equipment and $10,600 on the machine.

Explanation:

The annual depreciation on an asset is calculated using the straight-line depreciation method, which involves dividing the cost of the asset by its useful life. The testing equipment has a cost of $28,000 and falls in the three-year property class, so the annual depreciation can be calculated as $28,000 / 3 = $9,333.33. The machine has a cost of $53,000 and falls in the five-year property class, so the annual depreciation can be calculated as $53,000 / 5 = $10,600.

Answer:

1. Variable cost per unit   = $150

2. Markup percentage     = 34.89%

3. Selling price                 = $202.33

Explanation:

Variable cost per unit = 70+40+25+15= $150

Fixed cost   =  670,000+ 305,000 +285,000= $1,260,000

Fixed cost per unit  =    1,260,000/30,000= $42

Profit per unit   =        Targeted profit

                               Targeted production unit

                          = $310,000   =$10.33

                                30,000

Markup percenge =     Fixed cost per unit + profit per unit

                                          Variable cost per unit

                                =$42+ $10.33    =    52.33 * 100   = 34.89%

                                       $150                   $150      1

Selling Price        =  Variable cost per unit + markup

                            =  $150+$42+$10.33

                             = $202.33

Variable cost-plus pricing is calculated by  determining variable costs per unit and adding mark-up which will cover fixed costs per unit and generate a targeted profit margin.

Answer: The variable cost per unit is 150, The mark up percentage on variable cost is 5%, The selling price is $192

Explanation:

To calculate variable cost per unit

= (40 + 25 + 15 + 70)

= 150

To calculate fixed cost per unit

(670,000 + 305,000 + 285,000)

=1,260,000

Fixed cost per unit

= Total Fixed cost ÷ Total unit produced

= 1,260,000 ÷ 30,000

= 42

To compute the total variable cost

=Total Variable cost = Total quantity of output × variable cost per unit of output

= 30,000 × 150

= 4,500,000

Total Cost

= TFC + TVC

= 1,260, 000 + 4,500,000

= 5,760,000

To compute the mark up percentage on variable cost

= profit/ cost price ×100

= 310,000/ 5,760,000 × 100

= 0.05 × 100

= 5%

To compute the product selling price using the variable cost method

= variable cost per unit + Fixed cost per unit

= 150 + 42

= 192

Therefore the selling price is $192 in order to cover the fixed cost.

Answer:

b)9.1 percent

Explanation:

Data provided in the question:

1R1 = 13 percent,

1R2 = 16 percent3

E(2r1) = 10 percent

Now,

The liquidity premium theory is given as:

1 + 1R2 = [tex][ ( 1 + 1R1)\times(1 + E(2r1) + L2 )]^{\frac{1}{n}}[/tex]

for year 2, n = 2

Thus,

1 + 0.16 = [tex][ ( 1 + 0.13)\times(1 + 0.10 + L2 )]^{\frac{1}{2}}[/tex]

or

1.16² = [ 1.13 × ( 1.10 + L2)]

or

1.191  = 1.10 + L2

or

1.191 - 1.10 = L2

or

L2 = 0.091

or

L = 0.091 × 100% = 9.1%

b)9.1 percent

Answer:

Explanation:

One claim of unethical practice done by Starbucks is that they do not give a chance for small coffee-shops and try to cease them out by acquairing them or competing aggressively. However in the case of buying the coffeeshops they evaluate the price of the shop generously.

In terms of utilitarianism, the action of buying out small shops through generous offer is considered not unethical, because if Starbucks sets up their business nearby the small shop, it will most likely suffer and by purchasing them it is actually a favor for coffeeshops.

The characteristics of utilitarianism is:

The end result of an action should be the most positive outcome for all the parties concerned

The action that leads to the end result is not as important as the result itself

Even though discussed issue is ethical in temrs of utilitarianism view, it is unethical in terms of deontology. Starbucks is causing the shut down of the local business and also discouraging its growth.

The characteristics of deontological ethics is :

The action is the most important focus of the ethical consideration

The result may not be the best but the entity/person in charge should take an ethical action

The third part is the virtue ethics.  As per the virtue ethics, we cannot say that the action is ethical. This is not the only blame that Starbucks faces. They face allegation of exploiting coffee farmers, damaging the environment and mistreating their employees.

The characteristics of virtue ethics is

The moral value of the person/organization is more important than action or the result

Even if the action is unethical or the result is unethical, the moral of the person/company can still be correct.

Final answer:

Utilitarianism, Virtue Ethics, and Deontology characteristics explained in the context of Starbucks' ethical decision-making.

Explanation:

Utilitarianism assesses the moral worth of an action based on its consequences, specifically aiming for the greatest good for the greatest number.

Utilitarianism

Virtue Ethics

Deontology

Analysis: Starbucks, guided by utilitarianism, would prioritize decisions that maximize overall happiness and well-being for the majority when faced with an ethical dilemma. This approach shapes Starbucks' actions by emphasizing the importance of considering consequences and aiming for the greatest benefit to society.

Answer:

attaining its objectives      

Explanation:

The organization objectives are tangible and explain clearly the activities necessary to accomplish a mission. Objectives define the strategies that your company will use to attain commercial success, quality of customer care, promotional incentives and any other tangible goals.

In other phrases, a company objective is a consequence a corporation is trying to accomplish. It also involves the techniques individuals will need to get to this place. A business goal typically includes a time period and profiles the existing resources.

Answer:

Socio economic view

Explanation:

The socio economic view relates to viewing organizational decisions in the light of their both social and economic consequences.

The concept of corporate social responsibility relates to discharge of those social obligations which an enterprise owes to it's various stakeholders.

A business operates within social bounds and thus it becomes indispensable for a business to contribute to social good which could be in the form of amenities, providing better sanitation facilities or better infrastructure.

As per the socio- economic view, economic gains which represent economic profits and social gains as a measure of social betterment, both are inter related and a corporation must not view them as separate.

Answer:

(b). False

Explanation:

In his article, Michael Porter discussed the co-existence of both strategy and operational effectiveness.

Operational effectiveness as per Porter refers to performing activities which are similar to rivals in a better way and outperforming the rivals.

Strategic fit refers to that strategy with which an organization aligns its resources and capabilities with that of the opportunities prevalent in the business environment.

As per Porter, managers get caught up in a bid to improve operational effectiveness that they overlook the importance of a strategy.

Thus, the given statement is false.

Answer:

ROE is 0.164 or 16.4 %

Explanation:

In corporate finance, return on common equity (ROE) is an index of return on equity. It constitutes one of the most concise indices of the company's economic results. It is a percentage index for which the net income (NI) produced in a year is compared to the equity (Eq): the net capital, or equity of the year , that is to the production condition of direct relevance.

ROE=NI/Eq

If we have the characteristics of profit margin, total asset turnover and equity multiplier we can arrange new formula to calculate it as well. The equity on the first formula will be transformed to the nominator instead of denominator. The net income will also equal to the multiple of profit margin(PM) and total asset turnover(TAT). Then the new formula will be:

ROE= Eq Multiplier x PM x TAT= 1.45 * 1.33 * 0.85=0.164 or 16.4 %

Answer: The corrects answers are: "a. If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position.", "c. If Firm localize at the same point along the line, they will each sell to 50% of the consumers." and "d. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line.".

Explanation: According to the Hotelling model of the competition between two firms:

a. If both firms are localized in position 1/2 (i.e., center of the line), neither firm has incentives to deviate and move to a different position. - If this were the case, it would be indifferent for customers to go to either.

c. If Firm localize at the same point along the line, they will each sell to 50% of the consumers. - This happens because each consumer will go to the nearest one.

d. If Firm 1 is located at position 1/2 (i.e., center of the line) and firm 2 is located somewhere else, then both firms have incentives to deviate and change their position along the line. - This happens because the strategy chosen is not suitable for either company.

Answer:

Option (e) is correct.

Explanation:

Given that,

sales revenue = $1,820,000;

cost of goods sold = $920,000;

cost of goods manufactured = $566,000

selling and administrative expenses = $173,000

Gross margin = Sales revenue - cost of goods sold

                       = $1,820,000 - $920,000

                       = $900,000

Therefore, the Amaz-a-nation's gross margin would be $900,000.