Answer: B) $115,200
Explanation:
Fixed costs are by definition fixed which means that they do not change as a result of a change in production level. This means that where Greenway sells 48,000 units or 54,000 units or even 0 units, the company would still incur the same fixed cost of $115,200.
The costs that change as a result of production level change are called Variable costs.
Answer: After closing the balance in the retained earnings account will be $20,000.
We arrive at Retained earnings for a given year as follows:
We then find the closing balance in the Retained Earnings account as follows:
Answer:
Ke = Rf + β(Rm - Rf)
Ke = 4.3 + 1.12(13.2 - 4.3)
Ke = 4.3 + 1.12(8.9)
Ke = 4.3 + 9.968
Ke = 14.268%
Explanation:
In this question, there is need to calculate cost of equity based on capital asset pricing model. Cost of equity is a function of risk-free rate plus beta multiplied by the difference between market return and risk free rate.
Answer:
b. False
Explanation:
Adam Smith believed that incentives to seek personal gain would create wealth. He did not believe in active government intervention in order to redistribute wealth in an equitable manner. Adam Smith favored capitalism and the accumulation of wealth by individuals, he did not favor socialism and the redistribution of wealth.
