Answer:
the fixed costs for Rackit Corporation is $161,500.
Explanation:
Cash Flow DOL = 1 + Fixed Cost / EBITDA
2.7 = 1 + Fixed Cost / 95,000
1.7 = Fixed Cost / 95,000
Fixed Cost = $161,500
Therefore, the fixed costs for Rackit Corporation is $161,500.
<u>Explanation:</u>
Been the IT director at Attaway Airlines, it will be important to prepare a draft of the advantages and the level of difficulties the new computerized reservation system from an IT perspective.
However, the ultimate goal is not to simply win arguments, but to explain and consider the facts from both the Vice president of finance and the Marketing Manager.
The assumption in perfect competition that there is an easy entry and exit from the market implies that firms will make a zero economic profit in the long run.
<h3>Why do firms make a zero economic profit?</h3>
In a pure competition, companies are allowed to freely enter and leave.
They take advantage of this to enter a market when prices are high and economic profit is being made.
As more firms enter, the economic profit keeps decreasing as prices decrease until this profit gets to zero and then turns to economic losses.
At this point, some firms will leave the market to stop making losses. When they do, the supply will decrease which leads to prices rising once more.
The cycle will then repeat itself and keep the companies at a zero economic profit in the long run.
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Answer:
E
Explanation:
When following corporate ethics, you are proving that you are following your company's ethics and expectations of appropriate behavior.
