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zlopas [31]
3 years ago
11

Jose rents office space for $20,000 per year. He uses the office to fill out tax returns for 1<000 clients per year. If the o

ffice rent increases to $25,000 per year, the marginal cost of filling out tax returns will:
A. Not change

B. Increase by $5000

C. Increase, but we cannot determine the amount of the increase with the information given.

D. Increase by $5
Business
1 answer:
pav-90 [236]3 years ago
7 0

Answer:

(A) No change

Explanation:

Since the TC for filling 1000 returns increases from $2000 to $25000, this will remain fixed for any increase in the number of returns filed.

Even if the returns filed increases from 1000 to 2000 or 3000, the TC will remain the same.

Thus, there will be no change in MC.

Thus, correct option is (A) No change

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Forecasts are the foundation of the planning process. There are many methods available but the trick is to find the one that fit
jeyben [28]

Forecasts are the foundation of the planning process. There are many methods available but the trick is to find the one that fits the __need__ and is adaptable to the available _data__

3 0
3 years ago
Boosting morale in a workplace through reorientation is accomplished by giving employees _____.
VikaD [51]

Boosting morale in a workplace through reorientation is accomplished by giving employees a new direction and focus. Reorientation refers to changing the focus or direction of how things are currently going. If a company needs reorientation, the current focus or direction is not working. The change in focus allows for the employees to gain new tactics that may be worthwile for the employees to try new things.

3 0
3 years ago
Which of the following statements is true if total fixed costs decrease while the sales price per unit and variable cost per uni
Trava [24]

Answer:

D. The breakeven point decreases.

Explanation:

Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.

The formula for break-even is

Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)

Since sales price and variable cost is constant, let's say

(Sales price per unit- Variable cost per unit)= constant (k)

So when we cross-multiply in the formula

Breakeven* k= Total fixed cost

It shows that Breakeven point is directly proportional to Total fixed cost.

So a reduction in Total fixed cost will result in a reduction in Breakeven point.

3 0
3 years ago
Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $57,000. The market interest rate for bonds of similar ri
pishuonlain [190]

Answer:

$52,440

Explanation:

Calculation of what price will the bonds issue

Market rate of 8% ×$57,000

=$4,560

Hence,

$57,000-$4,560

=$52,440

This means that the bonds price will be issue at $52,440

Calculation for Interest payment :

($57,000 × 7% × ½ year) = $1,995

Calculation for the Market interest rate:

8%/2 which is the semi annual periods = 4%

Calculation of the Periods to maturity:

(15 years × 2 periods each year) = 30

Therefore the price that the bonds will be issued is $52,440

5 0
4 years ago
The Stagnant Growth Corporation has paid a constant dividend of $2.50 per year for the past 3 years and is expected to continue
AleksAgata [21]

Answer:

20.83%

Explanation:

Data provided

Dividend = $2.50

Required rate of return = 12%

The computation of the current price of the stock is shown below:-

The current price of stock = Dividend ÷ Required rate of return

= $2.50 ÷ 12%

= 20.83%

So, for computing the current price of the stock we simply divide the dividend by required rate

6 0
3 years ago
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