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3 years ago

Total Costs (dollars)

Business

1 answer:

Andrei [34K]3 years ago

6 0

The appropriate labels for Curves N and M in the nearby graph is that the Curve N is total cost and Curve M is total variable cost.

<h3>Why is the curve as stated about?</h3>

Because a fixed cost is constant, this is not shown on the graph, however, the movement of the variable cost impacts directly on the total cost as well but it will be higher.

Hence, the appropriate labels for Curves N and M in the nearby graph is that the Curve N is total cost and Curve M is total variable cost.

Therefore, the Option C is correct.

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Casey is the 12% marginal tax bracket, and Jean is in the 35% marginal tax bracket. Their employer is experiencing financial dif

larisa [96]

Answer:

Casey would prefer option 1; that he pays the premiums ($8,000). Even if Casey cannot deduct his insurance premiums as medical expenses, his income will only be reduced by $8,000. If he decided to take option 2, his income would be reduced by $8,800 (= $10,000 - 12%), so he is saving $800 by taking option 1.

On the other hand, Jean would prefer option 2; that her salary is reduced by $10,000 and her employer pays the premiums. By choosing option 2, Jean is going to lose $6,500 (= $10,000 - 35%). If she chose option 1, her income would be reduced by $8,000, so she is saving $1,500 by choosing option 2.

6 0

3 years ago

OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 50 thousand bond

babymother [125]

Answer:

$w_{d}$ = 0.3274 or, 32.74%

Explanation:

We know,

Capital Structure = Debt + Common Stock + Preferred stock

Given,

Common Stock = 4,000,000 shares

Share price = $21

Total common stock = No. of shares x share price

Total common stock = 4,000,000 shares × $21 = $84,000,000

Preferred Stock = 3,000,000 shares

Share price = $10

Total preferred stock = $10 x 3,000,000 shares

Total preferred stock = $30,000,000

Debt rate = 111% = 1.11

Debt = 50,000 bonds x $1000 par x 1.11

Debt = $55,500,000

Total Capital = $(55,500,000 + 84,000,000 + 30,000,000)

Total capital structure = $169,500,000

The weight for debt in the computation of OMG's WACC

= $\frac{Debt}{Total Capital Structure}$

= $\frac{55,500,000}{169,500,000}$

= 0.3274

or, 32.74%

8 0

4 years ago

QS 23-11 Sell or process further LO A1 A company has already incurred $5,200 of costs in producing 6,100 units of Product XY. Pr

andrew-mc [135]

Answer:

It is more profitable to sell te products as-is.

Explanation:

Giving the following information:

Sell as-is:

Selling price= $31

Continue processing:

Selling price= $35

Unitary incremental cost= $8

Units= 6,100

<u>The firsts $5,200 is a sunk cost, this means that the cost will remain the same in both options. It is irrelevant to the decision-making process.</u>

Sell as-is:

Effect on income= 6,100*31= $189,100

Continue processing:

Effect on income= 6,100*(35-8)= $164,700

It is more profitable to sell te products as-is.

5 0

4 years ago

How should the environmental effects be dealt with when evaluating this project? The environmental effects should be ignored sin

TEA [102]

Look this up this is really hard to understand

4 0

3 years ago

Which of the following statements is correct? Multiple Choice

nikitadnepr [17]

Answer: D -LIFO results in a higher net income than FIFO when costs are falling.

Explanation:

The LIFO and FIFO are methods of accounting for inventory.

LIFO means last in, first out. It means the last inventory purchased is the first inventory sold.

FIFO means first in,first out. It means older inventories are sold off first.

During period of rising prices, LIFO results in lower net income because the Cost of Goods Sold is higher. Inventories cost more during periods of rising prices.

When prices are falling , the LIFO method results in a lower cost of goods sold and therefore a higher net income.

4 0

4 years ago