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1 year ago

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:_________

1 answer:

5 0

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost <u>economic</u><u> profits must be zero</u>.

Profit-maximizing is the process of determining the most effective way to maximize earnings, either in the short or long term. It primarily focuses on identifying the price and output level that generates the greatest profit. It is a crucial premise that supported the development of numerous economic theories, including the pricing and production theories.

Profit maximizing is the sole goal of organizations, and conventional theories are built around this idea. It is also viewed as the organization's most rational and fruitful business goal. It aids in determining corporate organization behavior and the impact of various economic conditions.

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Which Act is the amended from of the Consumer Credit Protection Act?

Andreyy89

the answer is c i hope this helps

mark brainliest

6 0

3 years ago

A chemical company spent $ 530 comma 000 to produce 150 comma 000 gallons of a chemical that can be sold for $ 5.00 per gallon.

solmaris [256]

Answer:

If the company decides to process it further, it will increase operating income $68,000

Explanation:

Selling the chemical on processing,

the Sales will be = Gallons of chemical produce × Selling price per gallon

= 150,000 × $5

= $750,000

Cost of Processing the chemical = $530,000

Operating Income on selling the chemical:

= Sales - Cost of Processing the chemical

= $750,000 - $530,000

= $220,000

Total cost incurred to process the chemical into a weed killer:

= Cost of Processing the chemical +

= $532000 + $260,000

= $792,000

Sales of 150,000 gallons of weed killer:

= Selling price per gallon × Chemical produce

= $7.20 × 150,000 gallons

= $1,080,000

Operating income on processing to weed killer:

= Sales of 150,000 gallons of weed killer - Total cost incurred to process the chemical into a weed killer

= $1,080,000 - $792,000

= $288,000

So, If the company decides to process it further, it will increase operating income by:

= Operating income on processing to weed killer - Operating Income on selling the chemical

= $288,000 - $220,000

= $68,000

5 0

3 years ago

etermine the degree of operating leverage for each approach at current sales levels. (Round answers to 2 decimal places, e.g. 2.

viktelen [127]

Answer: $1,376,000.

Explanation:

So, we are given the following data or parameters or information which is going to assist us in solving this question effectively;

(1). The current approach and automated approach for Contribution Margin Ratio is 25 % and 50 % respectively.

(2). The current approach and automated approach for Break-even point in Sales Dollar is $ 1,248,000 and $ 1,312,000 respectively.

(3). The current approach and automated approach for Degree of Operating Leverage is 4.18 and 5 respectively.

(4). The current and automated approach for Decline in net income for a 10 % decline in sales is 41.8 % and 50 %.

(5). The current and automated approach for level of Sales where net income will be same under both options is $ 1,376,000 and $ 1,376,000 Respectively.

(6). The current approach and automated approach for Margin of Safety Ratio is 24% and 20% respectively.

Note that;

(1). BP = TFC / CMR

Where BP= Break-even point in sales dollar, TFC = Total Fixed Cost and CMR= Contribution Margin Ratio.

(2). MSR = ( ASD - BSD) / ASD × 100.

Where MSR= Margin of Safety Ratio,ASD=Actual Sales dollars, BSD= Break-even Sales dollars , and ASD = Actual Sales dollars.

(3). CMR = CM ÷ Sales × 100.

CMR = Contribution margin ratio, CM =Contribution Margin.

(4). DOL = CM ÷ NI.

Where DOL = Degree of Operating Leverage, CM = Contribution Margin and NI = Net Income.

Decline in net income for a 10 % decline in sales = OL x 10.

Where OL => Operating Leverage.

We then say that V = level of sales.

=> V x 25 % - 312,000 = V x 50 % - 656,000.

=> 0.25 V = 344,000.

V = $ 1,376,000.

4 0

2 years ago

James Corporation is planning to issue bonds with a face value of $502,500 and a coupon rate of 6 percent. The bonds mature in 7

sweet-ann [11.9K]

Answer:

Bond Price = $563,333.90007 rounded off to $563,333.90

Bond Price = $502500

Bond Price = $437232.16025 rounded off to $437232.16

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is a semi annual bond, we will use the semi annual coupon payment, semi annual number of periods and semi annual YTM. The formula to calculate the price of the bonds today is attached.

a. Case A: Market interest rate (annual): 4 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 4% * 6/12 = 0.02 or 2%

Bond Price = 15075 * [( 1 - (1+0.02)^-14) / 0.02] + 502500 / (1+0.02)^14

Bond Price = $563,333.90007 rounded off to $563,333.90

b. Case B: Market interest rate (annual): 6 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 6% * 6/12 = 0.03 or 3%

Bond Price = 15075 * [( 1 - (1+0.03)^-14) / 0.03] + 502500 / (1+0.03)^14

Bond Price = $502500

c. Case C: Market interest rate (annual): 8.5 percent.

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 8.5% * 6/12 = 0.0425 or 4.25%

Bond Price = 15075 * [( 1 - (1+0.0425)^-14) / 0.0425] + 502500/(1+0.0425)^14

Bond Price = $437232.16025 rounded off to $437232.16

7 0

3 years ago

Who influences the total output of the Egyptian economy?

shepuryov [24]

Answer:

Egyptian house holds yes

4 0

3 years ago