(B) When revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.
<h3>
What is revenue?</h3>
- The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue.
- Because it appears at the top of the income statement, revenue, which is also known as gross sales, is frequently referred to as the "top line."
- A company's overall earnings or profit are referred to as income or net income.
- Although both revenue and profit are positive indicators for your company, they are not the same thing.
- The producer surplus for a firm will probably reach zero when revenue equals opportunity costs and variable costs.
Therefore, (B) when revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.
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Answer:
Mulch next to wood siding may lead to wood rot.
Explanation:
Based on the scenario being described within the question it can be said that Maura was noting this as a concern because Mulch next to wood siding may lead to wood rot. This mulch can hold moisture for extended periods of time which may cause the wood to rot. Once the wood rots it is too late and must be replaced which depending on the location of the wood can be extremely expensive.
Answer:
d. 0.93
Explanation:
Investment turnover is a measurement of how a company is able to generate revenue as a result of using the money invested in the company.
Investment turnover is computed by
= Net sales ÷ Invested assets
Given that;
Sales = $140,000
Invested assets = $150,000
Investment turnover = $140,000 ÷ $150,000
Investment turnover = 0.93
Therefore, investment turnover for Division A is 0.93
Answer:
OCF $20,562
Explanation:
Computation of Pompeii, Inc., operating cash flow
Using this formula
OCF = EBIT + Depreciation - Taxes
Where:
EBIT 24,000
Depreciation Expense 2,100
Taxes 5,538
Let plug in the formula
OCF = $24,000 + 2,100 - 5,538
OCF = $20,562
Therefore the Operating Cash flow is $20,562
Calculation for EBIT
Sales $48,500 - Costs $22,400 -Depreciation expense $2,100 = 24,000
Calculation for taxes
EBIT -Interest
24,000-1,850
=22,150
25%×22,150
=5,538
