Southland Construction. has entered into a three - id14639929, SkinnestXOXO

Question

Business: Southland Construction. has entered into a three year contract to construct an office plaza for Northville Company for $300,000,000. Southland agrees to bill Northville 50% at the end of the first year, 30% at the end of the second year, and 20% at the end of the third year. At the end of year 1, Southland estimates it has completed 35% of the building and has incurred $55 million in construction costs. Requried: What is the correct entry to record billings for Southland Construction?

SkinnestXOXO · Accepted Answer

a. has shifted right, but her opportunity costs of making pies are unchanged.

Explanation:

As we know that Greta curve should be shifted to righward as she can generated more and more units for both the goods so here the c and d option would be remooved. The option A and optoin B are considering the opportunity cost so here we can see that

10 ÷8 = 5 ÷ 4

5 ÷ 4 = 5 ÷ 4

As it can been seen that the opportunity cost remains the same

Therefore the option A is selected

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