Answer:
C) minimize its weighted average cost of capital (WACC).
Explanation:
The weighted average cost of capital (WACC) is determined by multiplying the different costs of capital by their relative weight (proportional to the company's total capital structure). You must include all the sources of capital in order to calculate the WACC, e.g. common stock, bonds, bank loans, preferred stock and other long term debts.
The lower the WACC, the lower the discount rate for the company's cash flows.
Answer:
$2,000
Explanation:
The computation of the profit in case of Product B processed further is shown below:
Sales value if processed further $35,000
Less: Sales value at Split-Off $30,000
Incremental revenue $5,000
Less: Additional costs $3,000
Incremental income $2,000
First we have to find out the incremental revenue after that deduct the additional cost so that the incremental income or we can say profit could arrive
Answer:
D. Continue to make them because the incremental cost of buying is $22,000
Explanation:
Since the total manufacturing cost is $23,000 and the purchasing cost is $22,000 so the difference is very loss so it is to be continued by making them as the buying incremental cost is $22,000
Therefore the option d is correct
Hence, the other options are wrong
Answer:
See below ~
Explanation:
Filled in the attachment.
Answer:
Darren bought a differentiated product.
Explanation:
The differentiated product enjoys a distinction from similar products/brands in the market. This distinction may be real or psychological. Real distinction reflects from the ingredients, quality, utility, or service which the product gives. Psychological distinction is a feature of subtle sales appeals.
Other types of product include Customized, Augmented, and Potential Products. Customized Products are built to customers' specifications. Augmented Products are products with added manufacturers' improvements. Potential Products are tomorrow's products limited by economic and technological resources.