Answer:
The market price for tennis balls is currently $2 At this price, a firm is willing and able to produce 80 tennis balls. However, at this level of production, the firm experiences an average total cost of $0.50 per tennis ball. What is the profit for this firm
$120
Explanation:
$2 each per tennis ball
80 tennis balls produced yields= 160$
total cost per ball is $0.50
then it would be 0.50 x 80= 40
160-40= $120 profit
I think that it would be D
Answer:
The factors that affect individual productivity is described below in details.
Explanation:
Important Factors Influencing Employee Productivity:
- Work Environment: An employee’s work conditions affect their attitude, energy, and overall production in your organization.
- Processes: Processes, or their inadequacy, has a tremendous influence on organizational potency.
- Goals: Clearly illustrated work goals are great for boosting potency levels because they’re dimensions of productivity themselves.
Answer:
If the firm uses less leverage, its ROE will decrease since the cost of equity is much higher than the cost of debt. If all debt is eliminated, then ROE will decrease to 7.764% from 10.83%.
Explanation:
net income = $9.75 million
capital structure:
- $90 million equity
- $60 million debt
interest rate = 4% and tax rate = 21%
current return on equity (ROE) = $9.75 / $90 = 10.83%
current return of assets (ROA) = $9.75 / $150 = 6.5%
cost of debt = 4% x (1 - 21%) = 3.16%
if the company issues more equity to lower debt to 0, then:
net income = $9.75 + [$60 million x 4% x (1 - 21%)] = $9.75 + $1.896 = $11.646 million
return on equity (ROE) = $11.646 / $150 = 7.764%
return of assets (ROA) = $11.646 / $150 = 7.764%
Answer:
a -1. 48,572 units
a -2 2.56
Explanation:
Break even point is the level of activity where a firm neither makes a profit or loss.
Break Even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Sales per unit - Variable Cost per unit
= $38 - $24
= $14
Therefore,
Break Even point (units) = $680,000 ÷ $14
= 48,572 units
Degree of operating leverage = Contribution ÷ Earnings Before Interest and Tax
= 80,000 units × $14 ÷ (80,000 units × $14 - $680,000)
= $1,120,000 ÷ $440,000
= 2.56