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3 years ago

If the marginal benefit of an activity is greater than marginal cost of an activety, then you are better off___

Business

1 answer:

zloy xaker [14]3 years ago

3 0

As long as the marginal benefits are higher than the marginal costs you are better off continuing the activity.

Consider the example of eating pizza. Each slice of pizza gives you happiness and helps fill you up (marginal benefit), but each slice also has lots of calories and fat (marginal cost). As long as you are still hungry and getting enjoyment from eating, you should keep eating. But once you reach the point where you are too full then you should stop, because the costs now outweigh the benefits.

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Choose the correct statement.

Kamila [148]

Answer:

The correct answer is D. Choices that are the best for more than one person are said to be in the social interest.

Explanation:

The social interest is a concept sufficiently clarified in Company Law. The Capital Companies Law refers to it in terms of challenging social agreements: if an agreement is not in accordance with the corporate interest, it can be challenged. It is only negatively contested, that is, if the plaintiff can argue that the agreement is contrary to the social interest, so that it is not a validity requirement that the agreement be in accordance with the social interest. Likewise, if the administrators act against the social interest when they exercise their discretionary powers, they incur responsibility for violation of their duty of loyalty.

3 0

3 years ago

Sensitivity analysis:______.

alisha [4.7K]

Answer:

b. helps identify the variable within a project that presents the greatest forecasting risk.

Explanation:

Sensitivity analysis refer to the financial model that measures how the variable i.e. target one should be impacted and depend on the change in the other variable that we called as an input variable

In this, it would help to identify the variable that lies within the project and provide the high risk of forecasting

Therefore the option b is correct

4 0

2 years ago

Freitas Corporation was organized early in 2021. The following expenditures were made during the first few months of the year: A

goldfiish [28.3K]

Answer:

Dr Organization costs ($12,000 + $3,000) 15,000

Dr Patent ($20,000 + $2,000) 22,000

Dr Equipment 30,000

Dr Preopening expenses 40,000

Cr Cash 107,000

Explanation:

Organization costs are the initial costs incurred to start a business. They include attorney fees, and any other legal and registration fees required by both municipal state and federal government.

Any fees related to the purchase of the patent, e.g. commissions paid or attorney fees must be included in the purchase cost of the patent.

8 0

3 years ago

Shelhorse Corporation produces and sells a single product. Data concerning that product appear below:

zloy xaker [14]

Answer:

See explanation section.

Explanation:

Requirement 1

At first we have to find the original net income.

Shelhorse Corporation

Contribution format income statement

For the year ended, December 31, 20YY

Sales Revenue (6,100 × $260) = $1,586,000

Less: Variable expense (6,100 × $91) = $555,100

Contribution Margin = $1,030,900

Less: Fixed Expense $366,000

Net Operating Income = $664,900

Requirement 2

As the marketing manager believes that a $23,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales, the new sales volume = 6,100 + 150 = 6,250 and new fixed expense = $366,000 + $23,000 = $389,000

Shelhorse Corporation

Contribution format income statement

For the year ended, December 31, 20YY

Sales Revenue (6,250 × $260) = $1,625,000

Less: Variable expense (6,250 × $91) = $568,750

Contribution Margin = $1,056,250

Less: Fixed Expense = $389,000

Net Operating Income = $667,250

The effect on the company's monthly net operating income of this change = $667,250 - $664,900 = $2,350

5 0

3 years ago

Popped! is a specialty popcorn store. It offers two varieties of popcorn:

Ulleksa [173]

Answer:

Plain = 450 per month

Flavored = 1800 per month

Explanation:

We will calculate the breakeven in composite units first and then separate the into both products to find out individual number of both products that needs to be sold to break even.

The breakeven in units = Fixed cost / composite contribution margin

The composite contribution margin per unit = Contribution of Product 1 * weight of product 1 + Contribution of product 2 * weight of product 2

Thus, the composite contribution margin (CM) per unit for Popped is,

CM per unit-composite units = (2-0.8) * 1/5 + (4-2.5) * 4/5 = $1.44 per unit

The breakeven in units = 3240 / 1.44 = 2250 units per month

Out of this,

Plain = 2250 * 1/5 = 450 unts

Flavored = 2250 * 4/5 = 1800

4 0

3 years ago