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iren [92.7K]
2 years ago
7

What could support autoedge's ability to generate economic profits over the long term?

Business
1 answer:
Alina [70]2 years ago
4 0

A binding price floor on engines sold to a major customer.

<h3>What is customer?</h3>

A client is the recipient of a good, service, product, or idea gained from a seller, vendor, or supplier through a financial transaction or exchange for money or some other valuable consideration.

A client is defined as someone who purchases goods or services from a store, restaurant, or other retail seller. A customer is someone who goes to an electronics store and purchases a television. (informal) A person, particularly one who is interacting with others.

Customers that shop regularly yet make their purchasing decisions mostly based on markdowns. Need-based clients are those who intend to purchase a specific product. Customers who wander: Customers who are unsure of what they want to buy.

To know more about customer follow the link:

brainly.com/question/24553900

#SPJ4

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A flood damages a home that is in a community in early stages of participation in NFIP, but are not yet considered a participati
stepladder [879]

Answer:

$10,000

Explanation:

The National Flood Insurance Program (NFIP) allows property owners to buy insurance that protects them from damage caused by floods. But the NFIP is available only in participating communities.

In this case, the owner will receive up to $10,000 because it is covered under the Emergency Plan.

7 0
3 years ago
Ocean Gate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its variable costs per unit are
Angelina_Jolie [31]

Answer:

What is the firm's degree of operating leverage?

the degree of operating leverage measures the proportion of fixed costs vs. variable costs

total fixed costs = $30,000,000

contribution margin per hard drive = selling price - variable cost = $200 - $140 = $60

tax rate = 30%

expected sales = 2,000,000 hard drives

degree of operating leverage =  contribution margin / (total sales - total costs) = (2,000,000 x $60) / ($400,000,000 - $280,000,000 - $30,000,000) = $120,000,000 / $90,000,000 = 1.33

DOL = 1.33

If the economy enters a recession, what will be the firm's after tax profit?

firm's EBIT = total revenue - variable costs - fixed costs

  • total revenue = 1,000,000 x $200 = $200,000,000
  • total variable costs = 1,000,000 x $140 = $140,000,000
  • total fixed costs = $30,000,000

EBIT = $200,000,000 - $140,000,000 - $30,000,000 = $30,000,000

firm's after tax profit = EBIT x (1 - tax rate) = $30,000,000 x (1 - 30%) = $21,000,000

firm's after tax profit = $21,000,000

7 0
3 years ago
Read 2 more answers
When loan payments are amortized, the total amount you owe every month​
Naddik [55]

Answer:

<em>Since amortization means the period repayment of a loan, with a specific amount going to the principal and interest payments, the amortization schedule amounts to a total fixed monthly payment of $836.03 over the life of the mortgage loan.</em>

Explanation:

8 0
3 years ago
On July 1, 2017, Wyler Company placed a new asset into service. The cost of the asset was $90,000 with an estimated 9-year life
Drupady [299]

Answer:

$9000

Explanation:

Depreciation is a systematic allocation of the cost of an asset over its useful life. One method of depreciation is the straight line method where the value of an asset is uniformly and gradually written off over its useful life

<u>Working</u>

Cost of asset - $90000

Useful life - 9years

Salvage value - $9000

Fiscal year - (Jan 1- Dec 31)

Depreciable amount- (90000-9000)= $81000

Annual depreciation (straight line ) 81000/9 = $9000

December 31 2017 depreciation expense = $9000*1/2 = 4500

Decemebr 31 2018 depreciation expense = $9000

5 0
3 years ago
For a firm, analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a con
Llana [10]

Answer:

the three next cash flows are missing, so I looked for similar questions and found:

  • FCF1 = $20 million
  • FCF2 = $25 million
  • FCF3 = $30 million

in order to determine the company's value, we must first determine the horizon value in 3 years:

horizon value in year 3 = [$30 million x (1 + 5%)] / (11% - 5%) = $31.50 million / 6% = $525 million

the current value of the firm = $20/1.11 + $25/1.11² + $30/1.11² + $525/1.11³ = $18.02 + $20.29 + $21.94 + $383.88 = $444.13 million

the value of equity = $444.13 - $112.60 = $331.53 million

price per stock = $331.53 million / 25 million = $13.26 per stock

6 0
2 years ago
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