According to the sources on the internet, Letter D is the best answer. It is best not to accept that important and heavy responsibility if it will be your first time doing it. It is better to start off with small and easy requests and gradually increasing the tasks as your experience grew also. Since you will be turning down the offer, it is also proper and polite to refer the client to other businesses that can cater her needs.
As we go from home operation to international operations, we can potentially receive a<u> </u><u>rise in our costs</u>, but we can also see our <u>profits </u>increase. This is about business expansion.
<h3>
What is business expansion?</h3>
When a company reaches a certain point in its growth and starts looking for new ways to increase profits, that stage is known as business expansion.
Managing business growth or development is a challenge that successful firms and startups alike eventually encounter.
It is to be noted that while business expansion comes with possible potential increases in profit and net worth, incurring additional costs is a certainty.
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At the break-even point, the total sales and the total cost is said to be equal. Therefore, there is no profit or loss. We set up the equation as follows:
Profit/Loss = (Unit Contribution Margin) (Units) - (Fixed Costs) = 0
Unit contribution margin is (0.20)(1.50) = 0.30
Substituting the known values gives;
0 = (0.30)(400,000) - FC
FC = (0.30)(400,000)
FC = $120,000
<span>Therefore, the total fixed costs would </span>$120,000.<span>
</span>
If AR is constant, MR is equal to AR. Both are indicated by the same horizontal straight line(a situation of perfect competition)
<h3>What is the marginal revenue curve for a perfectly competitive firm?</h3>
- Marginal revenue for a company with perfect competition is the same as average revenue and pricing.
- This suggests that at values bigger than the average variable cost, the firm's short-run supply curve is its marginal cost curve.
- The company closes if the price falls below the average variable cost.
Marginal revenue is the change in total revenue when one more unit of a commodity is sold.
MR= change in TR/change in quantity sold
Average revenue refers to revenue per unit of output.
AR=TR/Q
Relationship between AR and MR:
If AR is constant, MR is equal to AR.
Both are indicated by the same horizontal straight line(a situation of perfect competition)
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Answer:
$2.08 million
Explanation:
The operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense
= $6.70 million - $3.70 million - $0.70 million
= $2.30 million
The income tax expense would be
= EBIT × tax rate
= $2.30 million × 40%
= $0.92 million
Now put these values to the above formula
So, the value would equal to
= $2.30 million + $0.70 million - $0.92 million
= $2.08 million