Answer:
the firm should have sold less output in the local market, and more output on the internet auction site.
Explanation:
Based on the scenario being described within the question it can be said that in order to maximize profits the firm should have sold less output in the local market, and more output on the internet auction site. This is because marginal revenue indicates the additional revenue that will be generated by increasing product sales by one unit. Therefore since the internet auction site's marginal revenue is higher than the local store, it means that selling more units in the internet site will lead to more profit than the local market.
Answer:
$109,688.89
Explanation:
According to the scenario, computation of given data are as follows,
Formula for Net present value are as follows,
NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 -
) ÷ r + Net working capital ×
Where, r = rate of return
n = number of years
By putting the value, we get
NPV = -28,000 - 2,800 + 32,500 × ( 1 -
) ÷ 0.14 + 2,800 × 
By solving the above equation, we get
NPV = $109,688.89
Answer:
<u>medically speaking, Yes!</u>
Explanation:
Since the scenario only <em>involves the individual running into the car, not the car hitting the individual</em>; meaning that he'll have less severe injuries.
To be able to recover from the harm done, the individual may need first aid treated.
Answer:
the minimum price it should charge is $40 per unit.
Explanation:
Minimum Transfer Price = Variable Costs - Internal Savings + Opportunity Cost
<em>Note : Division A has capacity available to meet B's requirements therefore there is no opportunity cost</em>.
There are Internal savings of $5 as A's variable costs will be $5 less per unit.
Minimum Transfer Price = $45 - $5
= $40
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