Answer:
porsche
Explanation:
i don't know that was the first thing that came to my head when I thought of p
Assists maybe that's ify so sorry
Answer: C. interest payments on the debt stay fixed, leaving more income to be distributed over less shares.
Explanation:
When the Earnings Before Interest and Taxes (EBIT) is higher, it means that after the interest payment (which is a fixed amount) has been deducted, there will be more income going to shareholders.
It is important to note that when there is leverage, there will be less shares than in the case of no leverage because no leverage would require more shares for adequate financing. Leverage does not require as much shares so the income left after interest payment deductions will therefore go to less shares.
Answer:
A) QE = 400, PE = 250
QW = 325, PW = 375
b) east market has more elastic market demand
Explanation:
Given data :
Marginal cost = $50 ( both markets )
demand and marginal revenue in each market are given differently
a) Determine/find the profit-maximizing price and quantity in each market
For east market :
50 = 450 - QE
hence QE = 450 -50 = 400
since QE = 400 ( quantity for east market )
400 = 900 - 2PE
PE = 250 ( PROFIT maximizing price for east market )
For west market
50 = 700 - 2QW
Hence QW = 325
since QW = 325
325 = 700 - pw
PW = 375
B) The market in which demand is more elastic is the east market because the quantity demanded is higher and also the profit maximizing price is lower as well
Answer:
Should Remain Open
Explanation:
The Brookside Raquet club should remain open as the company in making profits and contribution margin is positive
Contribution margin = Sales Revenue – Variable Cost
Contribution Margin = $145,000 – $130,000
Contribution Margin = $15,000
Fixed costs stays the same regardless of the number of units sold and it becomes a smaller percentage of each unit's cost as the number of units sold increases.