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 93 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
Thanks for the timely response, appreciate it


JaynaD87

  • Member
  • Posts: 368
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

For a complete list of videos, visit our video library