Explanation:
Growth overfishing occurs when fish are harvested at an average size that is smaller than the size that would produce the maximum yield per recruit.
The original data is :
Data for Hermann Corporation
Per unit Percent of sales
Selling price $ 75 100%
Variable expenses 51 68
Contribution margin $ 24 32%
The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.
Solution :
Present Proposed
Sales 300000 375000
Less : Variable cost 204000 275000
Contribution margin 96000 100000
Less : Fixed expenses <u> 75000 </u> <u> 75000 </u>
Net income 21000 25000
The net operating income : Increases 4000
Net operating income = increased sales Net income - current sales net income.
Therefore the higher quality component should be used.
Answer:
Economist A
Government spending multiplier $4billion
Tax multiplier $8billion
Economist B
Government spending multiplier $8billion
Tax multiplier $2billion
Explanation:
Computation for the amount the government would have to increase spending to close the output gap according to each economist's belief
ECONOMIST A
Government spending multiplier=16/4
Government spending multiplier=$4billion
Tax multiplier=16/2
Tax multiplier=$8billion
ECONOMIST B
Government spending multiplier=16/2
Government spending multiplier=$8billion
Tax multiplier=16/8
Tax multiplier=$2billion
Therefore the amount the government would have to increase spending to close the output gap according to each economist's belief are :
ECONOMIST A
Government spending multiplier=$4billion
Tax multiplier=$8billion
ECONOMIST B
Government spending multiplier=$8billion
Tax multiplier=$2billion
Answer:
A) total debt = $2,230,000 and it represents 175,000 - 125,000 = 50,000 outstanding shares
price per share = $2,230,000 / 50,000 = $44.60 per share
B) enterprise value = 175,000 x $44.60 = $7,805,000
According to M&M proposition I, the enterprise value is the same with or without any outstanding debt. So the company's value is the same for both alternatives.
