Answer:
d) Social media monitoring
Explanation:
Social media monitoring includes the tracking of brand i.e. online and the responses also. You should check and keep your brand on the top of the message prior it become viral for the reason i.e. not right. Also it would help in maintaining the positive brand between the consumers and influencers
So, as per the given situation, it is a social media monitoring
Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.
a. Sale of Common Stock.
b. Sale of Land
c. Purchase of Treasury Stock
d. Merchandise Sales
e. Issuance of a long-term note payable
f. Purchase of merchandise
g. Repayment of note payable
h. Employee salaries
i. Sale of equipment at a gain.
j. Issuance of bonds
Answer:
a. Sale of Common Stock.
Classification: Financing activity
b. Sale of Land
Classification: Investing activity
c. Purchase of Treasury Stock
Classification: Financing activity
d. Merchandise Sales
Classification: Operating activity
e. Issuance of a long-term note payable
Classification: Financing activity
f. Purchase of merchandise
Classification: Operating activity
g. Repayment of note payable
Classification:
Financing activity
h. Employee salaries
Classification: Operating activity
i. Sale of equipment at a gain.
Classification: Investing activity
j. Issuance of bonds
Classification: Operating activity
A newly independent Eastern European nation wants to adopt a floating exchange rate system in order to restore monetary control to its government. Using the monetary autonomy argument, how do this country's ministers justify establishing this system? Trade deficits are determined by the balance between savings and investment in a country, not by the external value of its currency. Unpredictability of exchange rate movements makes business planning difficult. Speculation in exchange rates dampens the growth of international trade and investment. Each country should be allowed to choose its own inflation rate. Variable exchange rates are more receptive to a trade balance.
Answer:
Each country should be allowed and given the possibility to set its own inflation rate.
Explanation:
The monetary autonomy argument states that a country's central bank should be free to influence its own money supply and internal economic conditions, and therefore a fixed exchange rate should be ineffectual and inefficient.
The proponents said that each country should be entitled to set its own inflation rate. Therefore, Each country should be given the free will to chose and decide its own inflation rate.
Rerun Manufacturing Company is in the process of preparing its 2020 budget and is anticipating the following changes: 30% increase in the number of units sold. 25% increase in the direct material unit cost. 20% increase in the direct labor cost per unit. 12% increase in the manufacturing overhead cost per unit. 20% increase in the sales price. 6% increase in the administrative expenses.
Answer:
$403,485
Explanation:
The computation is shown below;
Composition of direct material, direct labor and factory overhead in the ratio of 3:2:1
So,
Direct Materials = $333,000 × 3 ÷ 6 =$166,500
Direct Labor = $333,000 × 2 ÷ 6 = $111,000
Factory Overhead = $333,000 × 1 ÷ 6 = $55,500
Now the Revised Cost of Goods Sold for the year 2020 is
Direct Materials = $166,500 × 125% = $208,125
Direct Labor = $111,000 × 120% = $133,200
Factory Overhead = $55,500 × 112% = $62,160
finally the estimated cost of goods sold for the year 2020 is
= $208,125 + $133,200 + $62,160
= $403,485
The following information is available for Cubic Company before closing the accounts. After all closing entries are made, what will be the balance in the Retained earnings account
Answer: See explanation
Explanation:
Your question isn't complete but here are other information that I found online:
Net income = $112700
Retained earnings = $108000
Dividend = $40000
The balance in the Retained earnings account will be calculated as:
Retained earnings = $108000
Add: Net income = $112700
Less: Dividend = $40000
Balance of retained earnings = $180700
Creating a Budget
Before you can make a spending plan that works for your particular situation, you'll need to understand your spending priorities. What must you spend money on, and what items do you simply want? First, make sure you understand the following terms:
budget: a plan for saving and spending
expenditure: the amount of money spent
necessity: an item that a person must have, such as housing, clothing, or food
luxury: an item that offers physical comfort or enjoyment but is not necessary for life and health.
1. Classify each of the following expenditures as a necessity or a luxury. If any item can be considered either a necessity or a luxury, depending on the situation, classify it as either.
Expenditure Necessity Luxury Either
a. Auto insurance
b. Clothing for school
c. Concert tickets
d. Dinner for two at the newest
e. restaurant in town Groceries
f. Music downloads
g. Medical treatment for strep throat
h. Theme park tickets
i. New car
j. Rent
k. School lunches
I. School ski trip
m. Cell phone service
2. For those items that you indicated could be either necessities or luxuries, describe when you would consider them necessities and when you would view them as luxuries.
MAKING A BUDGET
3. Income First, write down your weekly income: $______.
4. Expenditures For one week, keep track of all of your expenditures. At the end of the week, put the totals in the table below.
Weekly Expenditure Current Amount
Clothing $
Debt repayment (monthly payment + 4) $
Entertainment $
Food (including groceries, meals
out, and snacks) $
Rent and utilities (monthly payment = 4) $
Transportation (own car, ridesharing, public
transportation, etc.) $
Personal care items $
Other $
Total Weekly Expenditures $
5. Subtract your total expenditures from your weekly income.
6. Revised budget
At the end of the week, did you have any money left? Or did you spend more than you earned? If you want to make better use of your money, take a look at how you're spending it and decide where you can trim expenditures. You may find that you could be spending your money on something you really want.
Weekly Expenditure New Budget Actual Spending
Clothing $ $
Debt repayment (monthly payment + 4) $ $
Entertainment $ $
Food (including groceries, meals out,
and snacks) $ $
Rent and utilities (monthly payment + 4) $ $
Transportation (own car, ridesharing,
public transportation, etc.) $ $
Personal care items $ $
Other $ $
Total Weekly Expenditures $ $
7. Using your revised budget as a guide, record your income and expenses for another week. How much money were you able to save?
Answer:
a. Auto insurance - Expenditure
b. Clothing for school - necessity
c. concert tickets - luxury
d. Dinner for two at the newest - luxury
e. Restaurant in town groceries - expenditure
f. music downloads - luxury
g. medical treatment for strep throat - necessity
h. Theme park tickets - luxury
i. New car - luxury
j. Rent - expenditure
K. school lunches - necessity
l. school ski trip - expenditure
m. Cell phone service - necessity
Explanation:
2. Necessity is anything without which survival of a person is not possible. Luxury is anything which adds value to the living standard of a person but survival without such thing is possible.
3. My weekly income is $200
4. Clothing $20
Debt repayment $50
entertainment $30
Food $45
Rent and utilites $25
transportation $10
Personal care items $5
Others $3
total weekly expenditure $188
5. $200 - $188 = $12
6. Yes i have $12 as saving at the end of the week.
At the beginning of 2018, Hold Steady Company had total assets of $520,000 and total liabilitiesof $250,000. Answer each of the following questions.
a. If total assets increased $60,000 and stockholders' equity decreased $90,000 during theyear, determine the amount of total liabilities at the end of the year.
b. During the year, total liabilities decreased $75,000 and stockholders' equity increased$50,000. Compute the amount of total assets at the end of the year.
Answer:
a. $400,000
b. $495,000
Explanation:
Assets = Equity + Liabilities
520,000 = Equity + 250,000
Equity = 520,000 - 250,000
= $270,000
a. Assets increased by $60,000. This would be:
= 520,000 + 60,000
= $580,000
Equity decreased by $90,000:
= 270,000 - 90,000
= $180,000
Liabilities = Assets - Equity
= 580,000 - 180,000
= $400,000
b. Total liabilities decreased $75,000:
= 250,000 - 75,000
= $175,000
Equity increased by $50,000:
= 270,000 + 50,000
= $320,000
Assets = Equity + Liabilities
= 175,000 + 320,000
= $495,000
Tim has a knee replacement. He has applied for a loan for this surgery; the loan has an annual interest rate of 9 percent. The artificial knee can function for 10 years and depreciates at a constant rate every year until the time of replacement. Fees for knee replacement surgery are expected to grow at 10 percent annually. What is the cost of this capital
Lafayette, Inc. was incorporated on January 1, 2014. Lafayette issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Lafayette has not paid any dividends yet. In 2017, Lafayette had its first profitable year, and on November 1, 2017, Lafayette declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders
Answer:
$5,600
Explanation:
Calculation to determine the total amount that will be paid to common stockholders?
Total amount paid to common stockholders=$44,000-[(800 (12%)($100)*4]
Total amount paid to common stockholders=$44,000-($9,600*4 )
Total amount paid to common stockholders=$44,000-$38,400
Total amount paid to common stockholders=$5,600
(2014-2017=4)
Therefore the total amount that will be paid to common stockholders is $5,600
Millington Materials is a leading supplier of building equipment, building products, materials, and timber for sale, with over 200 branches across the Mid-South. On January 1, 2021, management decided to change from the average inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 40%.
Income before Income Tax
FIFO Average Cost Difference
Before 2015 $35 million $28 million $7 million
2015 48 million 25 million 23 million
2016 30 million 29 million 1 million
Requied:
a. Prepare the journal entry to record the change in accounting principle.
b. Determine the net income to be reported in the 2016–2015 comparative income statements.
Answer:
A. Dr Inventory $30
Cr Income tax payable $12
Cr Retained earnings $18
B. 2016 Net income $18
2015 Net income $28.80
Explanation:
a. Preparation of the journal entry to record the change in accounting principle.
Dr Inventory $30
Cr Income tax payable $12
Cr Retained earnings $18
b. Calculation to Determine the net income to be reported in the 2016–2015 comparative income statements
Balance at Jan ,2015 $21.00 millions
[35 millions- (35 millions* 40%)]
NET INCOME $28.80 millions
Cash dividends ($4.20) millions
Balance At December 31,2015 $45.60 millions
NET INCOME $18 millions
Cash dividends ($4.20) millions
BALANCE AT DECEMBER 31,2016 $59.40 millions
Therefore the net income to be reported in the 2016–2015 comparative income statements will be:
2016 Net income $18
2015 Net income $28.80
The journal entry to record the change in accounting principle will be:
Debit Inventory $30 million
Credit Income tax $12 million
Credit Retained earnings $18 million
(To record error correction)
It should be noted that the income tax will be credited in the amount below:
= 40% × ($7 million + $23 million)
= 40% × $30 million.
= 0.4 × $30 million
= $12 million
The retained earnings will be:
= $30 million - $12 million
= $18 million
The net income to be reported in the 2016–2015 comparative income statements will be $18 million and $28.8 million.
The net income for 2016 will be:
= $30 million - $12 million
= $18 million
The net income for 2015 will be:
= $48 million - (40% × $48 million)
= $45 million - $19.2 million
= $25.8 million
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Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards ($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours ($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60) $49,000 fixed overhead $37,000 variable overhead
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400.
Required:
Compute the total, price, and quantity variances for (1) materials and (2) labor.
Answer:
Results are below.
Explanation:
To calculate the total, price, and quantity variance for direct material, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (4.4 - 4.15)*90,500
Direct material price variance= $22,625 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8*11,250 - 90,500)*4.4
Direct material quantity variance= $2,200 unfavorable
Total direct material variance= 22,625 - 2,200= $20,425 favorable
To calculate the total, rate, and efficiency variance for direct labor, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1.2*11,250 - 14,250)*13.4
Direct labor time (efficiency) variance= $10,050 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (13.4 - 14.1)*14,250
Direct labor rate variance= $9,975 unfavorable
Total direct labor variance= -10,050 - 9,975= $20,025 unfavorable
The accountant for Fazzi Corp. was preparing a bank reconciliation as of April 30, 2017. The following items were identified: Fazzi's book balance $46,200 Outstanding checks 1,100 Interest earned on checking account 50 Customer's NSF check returned by the bank 500 In addition, Fazzi incorrectly recorded a customer's check in cash receipts as $150; the bank recorded the amount correctly as $510. What amount will Fazzi report as its adjusted cash balance at April 30, 2017
Answer:
See below
Explanation:
With regards to the above information, the adjusted cash balance at April 30, 2017 is computed as shown below;
Book balance
$46,200
Add:
Interest earned on checking account
$50
Less:
Customer's NSF check returned by the bank
($500)
Add:
Error in recording customer's check
($510 - $150)
$360
Add:
Outstanding checks
$1,100
Adjusted cash book balance
$47,210
A company has a Deferred Tax Liability of $35,000. Now, the government has just changed the statutory tax rate from 35% to 30% effective immediately. What is the correct journal entry to record the impact of this tax rate change
Answer and Explanation:
The correct journal entry to record the impact of this tax rate change is shown Below:
Income Tax Expense $5,000
To Deferred Tax Assets $5,000
(being the income tax expense is recorded)
here the income tax expense is debited as it increased the expense and credited the deferred tax assets
So, the same should be considered
The following information is available for Kiss Company: Sales$100,000 Operating expenses$94,000 Operating assets$40,000 Stockholder's equity$25,000 Cost of capital 10% What is Kiss Company's residual income
Answer:
the residual income is $2,000
Explanation:
The computation of the residual income is shown below:
= Operating income - rate of return × operating assets
= ($100,000 - $94,000) - (10% × $40,000)
= $6,000 - $4,000
= $2,000
hence, the residual income is $2,000
The same is to be considered and relevant
Sunland Company sells office equipment on July 31, 2022, for $22,080 cash. The office equipment originally cost $72,560 and as of January 1, 2022, had accumulated depreciation of $38,910. Depreciation for the first 7 months of 2022 is $4,980.
Required:
Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment.
Answer:
Accumulated depreciation on Jan 1 , 2022 = $38,910
Depreciation for first 7 months of 2022 = $4,980
Accumulated depreciation on July 31 , 2022 = Accumulated depreciation on Jan 1 , 2022 + Depreciation for first 7 months of 2022 = 38,910 + 4,980 = $43,890
Sale price of equipment = $22,080
Book value of equipment on July 31, 2022 = Cost price - Accumulated depreciation = 72,560 - 43,890 = $28,670
Loss on disposal of equipment = Book value of equipment on July 31, 2022 - Sale price of equipment = 28,670 - 22,080 = $6,590
No. Account Titles and Explanation Debit Credit
(a) Depreciation expense $4,980
Accumulated depreciation- equipment $4,980
(b) Cash $22,080
Accumulated depreciation - equipment $43,890
Loss on disposal of equipment $6,590
Equipment $72,560
Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $225 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 10%. Assuming that Auerbach issued the bonds for $255,366,000, what would the company report for its net bond liability balance at December 31, 2021, rounded up to the nearest thousand?
Answer:
Auerbach Inc.
For its net bond liability balance at December 31, 2021, the company would report:
= $253,482 (in thousands).
Explanation:
a) Data and Calculations:
Face value of bonds = $225,000,000
Price of bonds = $255,366,000
Bonds premiums = $30,366,000 ($255,366,000 - $225,000,000)
Maturity date = September 30, 2031
Maturity period = 10 years
Coupon interest rate = 8%
Effective interest rate = 10%
Payment of interest = Semiannually on March 31 and September 30:
December 31, 2021:
Interest expense = $6,384,150 ($255,366,000 * 10% * 3/12)
Cash payment = $4,500,000 ($225,000,000 * 8% * 3/12)
Premium amortization = $1,884,150
Fair value of bonds payable = $253,481,850 ($255,366,000 - $1,884,150)
Excellent Company has provided the following operating information for one of its divisions: Sales $100,000 Variable expenses $55,000 Contribution margin $45,000 Direct fixed expenses $35,000 Common fixed expenses allocated in proportion to sales amounts to $16,000. Based on the provided information, calculate the division's segment margin.
Answer:
See below
Explanation:
Given the above information, segment margin is computed as shown below.
Segment margin = Net sales - Cost of sales - Fixed cost
Given that;
Net sales = $100,000
Cost of sales = $55,000
Fixed cost = $35,000
Then,
Segment margin = $100,000 - $55,000 - $35,000
Segment margin = $10,000
Therefore, the division's segment margin is $10,000
If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be _____.
Answer:
High
Explanation:
Entrants can be regarded as firms that are willing in entering a particular industry. As regards to market theory, a potential entry can become actual entry into a market on some condition such as when existing firms that are in the market have their earns above the Normal profit. It should be noted that If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be High
sykes company has sales revenue of $585,700. Cost of goods sold before adjustment is $335,900. The company's actual manufacturing overhead is $92,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit
Answer:
Actual gross profit $262,200
Explanation:
The computation of the actual gross profit is as follows;
Allocated manufacturing overhead
$104,400
Actual manufacturing overhead
$92,000
Over applied manufacturing overhead
$12,400
Unadjusted cost of goods sold
$335,900
Less:
Over applied manufacturing overhead
($12,400)
Adjusted cost of goods sold
$323,500
Sales revenue
$585,700
Less:
Adjusted cost of goods sold
($323,500)
Actual gross profit
$262,200
The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,400 hours at $10.50 What is the direct labor time variance
Answer:
Direct labor time (efficiency) variance= $12,870 favorable
Explanation:
Giving the following information:
Standard costs 7,500 hours at $11.70
Actual costs 6,400 hours
To calculate the direct labor time (efficiency) variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (7,500 - 6,400)*11.7
Direct labor time (efficiency) variance= $12,870 favorable
Name four commercial services which are useful to the manufacturer
Answer:
hu
Explanation:
giyughhyyfrfjjtvvhi
A company purchased a marketable security for $10,000 on 3/3/2013. On 3/30/2013, the company prepared its financial statements and marked the security to its market value, which was $17,500. The security was sold on 4/30/2013 for $15,000. The company used the Trading Securities method to account for the security. The statutory tax rate is 35%. What was the effect of the sale of the security on Income Tax Payable on 4/30/2013
Answer:10,000
Explanation: i got it in my classkick
Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the following 5 years.
Answer:
12.60 %
Explanation:
Using the CF function of a financial calculator the internal rate of return will be calculated as follows :
- $177,000 CF 0
$21,000 CF 1
5 shift Nj
$29,000 CF 2
5 shift Nj
$42,000 CF 3
5 shift Nj
Then
Shift IRR = 12.60 %
therefore,
the internal rate of return for a project is 12.60 %
Understand and explain the process of idea generation and validation
Answer:
Idea generation is the creative process or procedure that a company uses in order to figure out solutions to any number of difficult challenges. It involves coming up with many ideas in a group discussion, selecting the best idea or ideas, working to create a plan to implement the idea, and then actually taking that idea and putting it into practice. The idea can be tangible, something you can touch or see, or intangible, something symbolic or cultural.
Idea validation is the process of testing and validating your idea prior to launching your business name, tagline, product, service or website. This is like the research and development process big companies use to test product ideas before they’re released to the general public.
Idea validation can involve anything from information-gathering interviews to special landing pages on the web. The entire purpose is to expose the idea to your target audience before you build and release the final product.
The beauty of an economic model comes from:______.
a. its ability to represent a complex reality without any simplification.
b. its ability to make clear predictions that are consistent with reality.
c. its simplicity in presenting the essential elements of an otherwise complex reality.
d. b and c.
Answer:
D
Explanation:
An economic model is a simplified abstraction of reality. An economic model aims to present economic reality in a simplified form. it also aims to make accurate prediction consistent with reality.
for example, the law of demand is an example of an economic model.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
this economic model is true because rational human beings tend to purchase more of normal goods when the price is lower than when the price is higher.
Income can be earned through:
- A permanent job
- A seasonal job
- All of the above
all of the above
mark me brainliesttt :))
Sales $ 100,000 Operating expenses $ 94,000 Operating assets $ 40,000 Stockholder's equity $ 25,000 Cost of capital 10 % What is Sweet Dreams Company's return on investment (ROI)
Answer:
15%
Explanation:
Given that :
Operating expenses = $94000
Operating assets = $40,000
Sales = $100,000
Return on investment = profit / operating asset
Profit = sales - operating expenses
Profit = (100,000 - 94000) = $6000
Return on investment = $6000 / $40000 = 0.15
= 0.15 * 100% = 15%
The theory of constraints says thatqueues should not be allowed to form in the plant.bottleneck resources should be idle whenever possible.the bottleneck is the most critical resource.labor expense reduction should be the primary goal.
Answer:
the bottleneck is the most critical resource
Explanation:
The constraint theory represent that the bottleneck would be considered as the most critical resources as it decided how much long the process could be delayed and due to this the objectives and the goals of the organization would be highly impacted
Therefore as per the given situation, the above represent the answer
Waterway Industries Recorded operating data for its Cheap division for the year. Waterway requires its return to be 10%. Sales $1600000 Controllable margin 88000 Total average assets 4400000 Fixed costs 100000 What is the ROI for the year
Answer:
See below
Explanation:
Given the above information, first we need to get the value of contribution margin , which is computed as;
Controllable margin = Contribution margin - Total direct fixed cost
$88,000 = Contribution margin - $100,000
Contribution margin = $88,000 + $100,000
Contribution margin = $188,000
Also,
Net income = Contribution margin - Total fixed expense
Net income = $188,000 - $100,000
Net income = $88,000
Return on investment = Net income ÷ Average operating assets
Return on investment = $88,000 ÷ $4,400,000
Return on investment = 2%
Therefore, the ROI for the year is 2%
Bob writes a check to cash for $1000 to pay a bill from Acme. He then finds out that Acme breached the contract so he decides he will not pay them and puts a stop payment on the check. However, the check is stolen by Theron Thief (and Bob was not negligent) who then gives it to his landlord, Larry Landlord, who Theron already owes $1000. If Larry does not know about the theft or any problems with the instrument, what is the status of Larry:
Answer:
Holder in due course
Explanation:
A holder in due course arise when someone accepted the negotiable instrument for exchange in the value without any kind of reason. In this, there is a right for claim the value of an instrument that oppose to the orginator and the intermediate holders
So as per the given situation, Lary is holder in due case as he is holding the check in the good faith also he is not aware of the last theft
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.