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Answer and Explanation:
The computation is shown below:
Fixed cost is
= $500,000 + $1,000,000
= $1,500,000
And, the marginal cost is
= $0.25 + $0.10
= $0.35 per paer
Now
as we know that
AFC = FC ÷ Q
Now for At 1,000,000 papers,
AFC is
= 1,500,000 ÷ 1,000,000
= $1.50/mo
At 800,000
, it would be
AFC = 1,500,000 ÷ 800,000
= $1.875/mo
MC = $0.35 per paper and the same is not changed
Now for break even, the average total cost is
ATC = AFC + AVC
ATC = FC ÷ Q + VC ÷ Q
VC = MC × Q
ATC = FC ÷ Q + MC
ATC = FC ÷ Q + 0.35
At Q = 1,000,000,
ATC = 1.50 + 0.35
ATC = $1.85
At Q = 800,000
, it would be
ATC = 1.875 + 0.35
= $2.225
As it can be seen that
The AFC changes from 1.50 to 1.875 which shows an increment of 0.375.
The MC remains constant or same at 0.35 as the printing and delivery costs per paper are remain same
And, The minimum amount that we must charge to break even rises i.e. from 1.85 to 2.225. That is a rise of 0.375
Answer:
Premium
Explanation:
Whenever a bond sells for more than its face value, it sells at a premium, which means that the investors are willing to pay more for the bond than its face value. This happens when the coupon payment percentage on the bond are higher than the yield to maturity of the bond, because the investors required return is the yield to maturity, when the bond pays more than the required return the investors are willing to pay more for the bond.
Answer:
Wal-Mart's previous revenue policy was inconsistent with the revenue recognition principle. It used to recognize revenue when performance obligations have not been met.
Explanation:
In response to SAB 101 issued by the Stock Exchange Commission in 1999, Wal-Mart changed its revenue recognition policy for layaway transactions. Layaway transactions are those in which Wal-Mart sets aside merchandise for customers who make partial payment. Before SAB 101, Wal-Mart recognized all revenue on the sale at the-time of the layaway. After the change, Wal-Mart does not recognize revenue until customers satisfy all payment obligations and take possession of the merchandise.
Answer:
These are the options for the question:
- Peer pressure
- Personality conflict
- Climate of mistrust
- Fear of failure
And this is the correct answer:
Explanation:
Ted is afraid of failing at his new role, he is suffering from fear of failure. This is because Ted was accustomed to completing a set of tasks specific to his previous position in the company.
Now that the company has reorganized, he has been given a new position, and new tasks to complete, and he does not feel at ease at first, likely because he lacks first-hand experience with some of the tasks.
