The cost of advertising is part of the firm's variable cost and if advertising enables the firm to sell a greater output, its average total cost does not change.
Variable costs are dependent on the production output and sales. The variable cost of production is a constant amount per unit produced.
As the volume of production and output increases, variable costs will also increase. Alternatively, when fewer products are produced, the variable costs associated with production will consequently decrease.
Different examples of variable costs are sales commissions, cost of raw material, direct labor costs, used in production, and utility costs.
To know more about variable costs here:
brainly.com/question/27853679
#SPJ4
Answer:
The incremental cash flow from selling the machine is $738,657
Explanation:
In order to calculate the incremental cash flow from selling the machine we would have to calculate the following formula:
incremental cash flow = sale price - (sale price - book value)*tax
Book value = $1,150,000 - $1,150,000/7*3
Book value =$657,142.86
Therefore, incremental cash flow =$793,000-($793,000-$657,142.86
)*40%
incremental cash flow =$738,657
The incremental cash flow from selling the machine is $738,657
Answer:
Slavery in the southern US began to expand in the Virginia Colony with the tobacco plantations in the Chesapeake area. It expanded southwards with time, first to the Carolinas, were slaves were imported to work in Rice Plantations, and, finally the Georgia colony.
However, cotton began to replace tobacco, rice and sugar in the South, because it was more profitable, and suited better the soil and climate of the region. With the cultivation of cotton, slavery became widespread in the US. The majority of slaves were "imported" from the end of the 17th century to the first decades of the 18th century.
Cotton plantations made then, slavery institutions of the antebellum South widespread, strong and entrenched. The economics of the South practically depended on slavery, just like the economics of the Roman Empire a millenium ago.
Answer:
cost of goods available for sale= $4,060
Explanation:
Giving the following information:
Beginning inventory, January 1: 400 $3.00
Purchase, January 30: 300 3.40
Purchase, May 1: 460 4.00
<u>The cost of goods available for sale is the sum of the beginning inventory and the purchases of the period:</u>
<u></u>
cost of goods available for sale= beginning inventory + purchase
cost of goods available for sale= 400*3 + 300*3.4 + 460*4
cost of goods available for sale= $4,060
Answer:
the liquidity preference theory
Explanation:
The theory of liquidity preference relates to the concept that indicates that an investor will accept a lower rate of interest or yield on assets with lengthy-term maturities that come with higher volatility as stakeholders favor cash or other highly liquid resources, all other considerations being equivalent.
As per the liquidity choice principle, brief-term debt interest rate is lower as creditors do not risk liquidity with larger time periods than medium- or longer-term securities. In simple words, As per the liquidity choice principle, the brief-term debt interest rate is lower as creditors do not risk liquidity with larger time periods than medium- or larger-term securities.
