Answer: Rise initially, but eventually fall.
Explanation:
The increase in the workers brought would increase the marginal product; there would be increase in production based on the number of persons that were engaged but the marginal cost might eventually fall in the future because of human management and resilience from the workers that were brought
Budgeted Purchases = Sales units + Closing inventory - Beginning Inventory
= 5,000 + (1,000 * 130%) - 1,000
= 5,300 units
Answer:
c. a difference in the subject matters of operas X and Y
Explanation:
All factors could directly explain the fact that opera Y generated far greater net profits that did opera X except for this one. Although the subject matter might have some impact on sales, it could not do so in a direct way. It could only do so if we take other factors into account, such as the cost of producing a particular opera or the interest that people have on an opera (which results in greater or lesser ticket sales).
Answer:
4.87%
Explanation:
In this question , we are asked to calculate the appropriate after-tax cost of new debt for the firm to use in capital budgeting analysis.
PMT = 1000*7% = 70 (indicates the amount of interest payment)
Nper = 10 (indicates the period over which interest payments are made)
PV = 966 (indicates the present value)
FV = 1000 (indicates the future/face value)
Rate = ? (indicates the cost of debt)
After Tax Cost of Debt = Rate(Nper,PMT,PV,FV)*(1-Tax Rate) = Rate(10,70,-966,1000)*(1-.35) = 4.87%