This topic contains a solution. Click here to go to the answer

Author Question: Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for 250,000 a year. He ... (Read 95 times)

audragclark

  • Hero Member
  • *****
  • Posts: 579
Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for 250,000 a year. He pays his farm hands 28,000 a year.
 
  Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Briefly explain your answers.

Question 2

What is the present value of 1,000 to be received 2 years in the future with an interest rate of 8 percent?
 
  A) 857.34
  B) 925.93
  C) 1080.00
  D) 1166.40



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kiamars2010

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

Jake's rent is a fixed cost. He is renting his land on a long-term lease and so the land is a fixed factor. The wages Jake pays are a variable cost. Labor is a variable factor so the wages are a variable cost.

Answer to Question 2

A




audragclark

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
Wow, this really help


AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

For a complete list of videos, visit our video library