If the LRATC curve is falling, economies of scale are present.
<h3>What is LRATC?</h3>
- A business indicator known as long-run average total cost (LRATC) shows the average cost per unit of output over a lengthy period of time when all inputs are assumed to be erratic and the production scale is flexible.
- The long-run average cost curve displays the long-run total cost of production at the lowest level of output.
- Because businesses can adjust major parts of their operations, like factories, over a lengthy period of time to attain maximum efficiency, long-term unit costs are typically lower than short-term unit costs.
- Identifying the lower boundaries of LRATC is a goal shared by investors and firm management.
- If the LRATC curve is falling, economies of scale are present.
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The answer is D. $600. In general, the employee discount didn't result in taxable income to the recipient. The amount that may be excluded in relation to services purchased by employees, however, is limited to 20% of the amount normally charged to non-employee customers. As a result, Norbert would be able to exclude an employee discount up to 20% x $2,000 or $400 with the remaining $600 included in gross income.
Answer:
B) $27,500.
Explanation:
The computation of the amount credited to the allowance account is shown below:
= Sales during the 2017 year × estimated uncollectible percentage
= $2,750,000 × 1%
= $27,500
By multiplying the sales with the estimated uncollectible percentage we can get the amount credited to the allowance account and the same is to be considered
Hence, the correct option is B
Answer:
option (d) $500
Explanation:
Data provided in the question:
Reynolds Construction's value of operations = $750 million
short-term investments = $50 million
accounts payable = $100 million
notes payable = $100 million
long-term debt = $200 million
common stock = $40 million
retained earnings = $160 million
Now,
Firm value of equity
= Free cash flow value + Investments - Debt - Notes payable
= $750 million + $50 million - $200 million - $100 million
= $500 million
Hence,
the correct answer is option (d) $500
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