Answer:
It is more profitable to sell the units as-is.
Explanation:
Giving the following information:
Number of units= 12,600
Varto has two alternatives for these items:
(1) they can be sold to a wholesaler for $13 each
(2) they can be processed further for $272,300 and then sold for $34 each.
The first cost of $31 is a sunk cost, it will remain no matter which option is chosen. We will not take it into account for the decision making process.
Option 1:
Effect on income= 12,600*13= $163,800
Option 2:
Effect on income= 12,600*34 - 272,300= $156,100
It is more profitable to sell the units as-is.
Answer:
d. economies of scale
Explanation:
Based on the information provided within the question it can be said that this concept is known as an economy of scale. Like mentioned in the question this concept states that as a company scales their operation, the cost of each input unit decreases as their output or production increases, Thus granting the company a cost advantage. As is happening in this scenario.
If a firm needs to finance a new corporate headquarters building, then it would most likely seek the funds in the <u>capital market</u>.
A capital market is a place where buyers and sellers bask in the trade of economic securities like bonds, shares, and many others. The trading is undertaken by using participants which includes people and establishments. Capital marketplace trades broadly speaking in lengthy-term securities.
The capital market is wherein individuals and companies borrow price ranges using shares, bonds, debentures, debt units, and so on. The maximum common instance is a stock alternate which includes NASDAQ, trading shares from one-of-a-kind businesses among buyers.
Capital markets are crucial due to the fact they finance the economic system, allocate danger, and support economic boom and monetary balance. within the U.S., capital markets fund seventy two% of all monetary activities, in terms of equity and debt financing of non-economic organizations.
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Answer:
C) III
- III. No, the policy was excluded from Joseph's estate.
Explanation:
It doesn't matter who pays the policy's premiums, what matters is who is the beneficiary of the policy. If the proceeds of the policy are paid to the insured's estate, then they are part of it, but if the proceeds are paid to another beneficiary, then they are not included in the estate.
Since Joseph's wife was the owner and beneficiary of the policy, the proceeds will be paid directly to her. The advantage here is that proceeds from the life insurance policy are not taxed as income, but if Joseph's state was larger than $5.43 million, then estate taxes might apply.
