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2 years ago

What is financial economies of scale

Business

1 answer:

nekit [7.7K]2 years ago

4 0

Answer:

Financial economies of scale are a type of internal economy of scale. They are economies of scale enable more favourable rates of borrowing. That is, larger businesses are seen by lenders as more reliable or worthy of credit due to their size, whereas smaller businesses will tend to pay higher rates of interest.

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Units Unit Cost Inventory, Jan. 1 8,000 $11 Purchase, June 19 13,000 12 Purchase, Nov. 8 5,000 13 If 9,000 units are on hand at

Lostsunrise [7]

Answer:

The answer is: $100,000

Explanation:

Under LIFO (last in, first out) costing method, we use the oldest costs are used to determine the ending inventory:

We were given the following data:

Jan. 1: 8,000 purchased at $11 per unit
June 19: 13,000 purchased at $12 per unit
Nov. 8: 5,000 purchased at $13 per unit

If the ending inventory had 9,000 units, then its total cost is:

Ending inventory = (8,000 units x $11 per unit) + (1,000 units x $12 per unit)

Ending inventory = $88,000 + $12,000 = $100,000

3 0

3 years ago

If ERS had an incremental increase in revenue of $100,000, based on the net profit margin computed, what is the additional poten

romanna [79]

Answer:

The first part of the question was missing, so I looked for it:

total revenue = $934,500

net income = $62,260

net profit margin = (net income / total revenue) x 100 = ($62,260 / $934,500) x 100 = 6.662%

if revenue increases by $100,000, then net income should increase by:

$100,000 x 6.662% = $6,662

3 0

3 years ago

In the study of geomorphology, why do we primarily concentrate on processes rather than on distribution patterns by latitude?

4vir4ik [10]

In the study of geomorphology, processes like weathering and erosion are key to how the rocks will be sculpted by natural forces to produce interesting landforms like buttes and mesas for example. The distribution of geomorphological features like say the Amazon River by latitude is important but the process that shaped the landforms is more important as to how it got its present configuration.

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4 years ago

You will require $620 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reac

brilliants [131]

Answer:

Present value of money invested = 485.79 (Approx)

Explanation:

Given:

Future value = $620

Number of years = 5 years

Present value = ?

Rate of interest = 5% = 5/100 = 0.05

Computation of Present value of money invested:

Present value = $\frac{Future\ value}{(1+r)^n}\\\\$

$Present \ value = \frac{Future\ value}{(1+r)^n}\\\\Present \ value = \frac{620}{(1+0.5)^5}\\\\Present \ value = \frac{620}{(1.5)^5}\\\\Present \ value = \frac{620}{1.277628156}\\\\Present \ value =485.786224$

Present value of money invested = 485.786224

Present value of money invested = 485.79 (Approx)

8 0

3 years ago

If a firm is a factor price taker in the labor market,a) it will continue to hire workers as long as MFC > MRP. b) it must pa

pav-90 [236]

Answer:

d) it can hire all the workers it wants to at the going wage rate.

Explanation:

The price taker means the company or an individual is ready to accept the prices that are prevailed in the market

In the case when a firm is a price taker in the labor market also it cannot set the prices as expected. The attached diagram represent the flat supply curve. It hire the workers depend upon the MPR and the factor supply curves

Therefore in the given situation, the last option is correct

8 0

3 years ago

What is financial economies of scale​

What is financial economies of scale