Answer: The answer is b. Reduce output in the short run.
Explanation: In production, to determine the quantity of products to supply, the demand of the consumer plays a very vital role. This is because the consumer demand will determine the price at which a company will sell its products.
In the case of Techno above, they would do well to reduce the output in the short run, since demand has reduced, pending when the demand increases. This is because if they maintain their current output of 3000 TV sets per week, they will sell less units and their revenue (price x quantity sold) will be lower than their cost and this will lead to them incurring loss.
So until the recession scare passes, output should be reduced in the short run.
Answer:
WACC - new project = 6.408% rounded off to 6.41%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common equity
- rD * (1 - tax rate) is the after tax cost of debt
We first need to calculate the WACC of the company and then adjust it for the new project.
WACC = 35% * 3.28% + 65% * 10.4%
WACC = 7.908%
As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,
WACC - new project = 7.908% - 1.5%
WACC - new project = 6.408% rounded off to 6.41%
The measures that change in prices of a basket of goods and services in a given year include option D: inflation.
<h3>
What do you mean by term Inflation?</h3>
The term inflation is defined as the rise in the prices of goods and services in an economy.
The average change over time in the prices paid by urban consumers for a market basket goods and services of consumer is measured by the consumer price index.
Therefore, correct option is D.
Learn more about inflation, refer to the link:
brainly.com/question/15692461
#SPJ1
Answer:
1. Are you advertising to a specific group of people/ Who is your target audience?
2. How would you reach out to that audience/What emotions are you trying to trigger within their minds?
3. How would you justify your prices?
4. Is your idea viable in the current market?
5. How would you differentiate your goods and services from any other similar products in the industry?
These are just examples. Hope this helps!
Answer:
$17.5
Explanation:
Direct Labour- 55000
Variable Overhead- 45000
Fixed overhead- 70000
Direct material- 20000
Total = $190,000
Total relevant cost of manufacturing = Direct material + Direct labour + Variable overhead + Avoidable Fixed cost + Opportunity cost
Where Avoidable fixed cost = 10,000 units * 4 = 40.000
0pportunity cost= $15,000
Total relevant cost of manufacturing = 25000 + 55000 + 45000 + 40000 + 15000 = $175,000
Now, Price that CJP would be indifferent to XYZ Offer can be derived by: Total Relevant Cost of Manufacturing / No of unit product
= $175,000 / 10,000 units
=$17.5
