Answer:
The answer is B. $45.00 per hour; $120.00 per hour
Explanation:
highminusoutput
Fixed costs 400000/16000= $25
variable costs 320000/16000= $20
Total <u>=$45</u>
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lowminusoutput
Fixed costs 400000/4000 = $100
variable costs 80000/4000 = $20
Total =<u>$120</u>
Answer:
Sustainability refers to activities that can continue without depleting nonrenewable resources. By locally producing food, shipping costs are reduced. Shipping costs involve the use of fuel (gasoline and diesel), materials (boxes and plastic bags), equipment (machinery and trucks), etc. Many of these costs require the use of nonrenewable resources, e.g. oil by-products and metals, so reducing their use helps the environment.
Economically speaking, local food production helps to lower food costs, local farmers are benefited and more money stays in the local economy. Globalization shrunk the world, so producing food locally may apply to a region surrounding a city or a whole country, and the large the net exports (exports - imports) of a region or country, the better.
Answer:
A) Both NPV and going-in IRR to increase
Explanation:
The company's weighted average cost of capital (WACC) includes both equity and debt, and if the cost of equity is higher than the cost of debt, an increase in the percentage of debt will lower the company's WACC. The WACC is used as the discount rate to calculate the net present value (NPV) of the project.
If the discount rate is lower, then the present value of the cash flows will be higher, increasing the NPV. The internal rate of return (IRR) is the interest rate required for the NPV to be equal to $0, so if the NPV increases, then you need a higher interest rate to make it equal $0 (therefore the IRR is higher).