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4 years ago

Which one of the statements below is false when comparingthe relationship between marginal and average product?

Business

1 answer:

kolbaska11 [484]4 years ago

6 0

Answer:

C) The relationship between MPL and APL is not the same as the relationship between the marginal of anything and the average of anything.

Explanation:

The relationship between marginal something and the average of that something always represents the same concept.

For example, the marginal utility of a product and average utility of a product refers to the same concept; An extra unit of product will produce how much extra units of utility, while the total number of units of utility divided by the number of products equals the average utility of a product.

We can change units of utility for costs in $$ and our sentence would be; An extra unit of product will cost $XX, while the average product cost is the total number of units produced by the total costs.

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Vandelay Industries is considering the purchase of a new machine for the production of

Colt1911 [192]

The Equivalent annual cost for the Machine A and B is $5,083,947.72 and $5,461,499.68 respectively,

<h3>What is an Equivalent annual cost?</h3>

In accounting, this refers to the annual cost of owning, operating, and maintaining an asset over its entire life.

<h3>Machine A:</h3>

Cost of Machine = $3,210,000

Useful Life = 6 years

Annual Depreciation = Cost of Machine / Useful Life

Annual Depreciation = $3,210,000 / 6

Annual Depreciation = $535,000

Annual OCF = [Sales - Variable Costs - Fixed Costs] * (1 - tax)+ tax * Depreciation

Annual OCF = [$12,400,000 - 37% * $12,400,000 - $350,000] * (1 -0.24) + 0.24 * $535,000

Annual OCF = $7,462,000 * 0.76 + 0.24 * $535,000

Annual OCF = $5,799,520

NPV = -$3,210,000 + $5,799,520 * PVIFA(9%, 6)

NPV = -$3,210,000 + $5,799,520 * 4.48592

NPV = $22,806,182.76

EAC = NPV / PVIFA(9%, 6)

EAC = $22,806,182.76 / 4.48592

EAC = $5,083,947.72

<h3>Machine B:</h3>

Cost of Machine = $5,455,000

Useful Life = 9 years

Annual Depreciation = Cost of Machine / Useful Life

Annual Depreciation = $5,455,000 / 9

Annual Depreciation = $606,111.11

Annual OCF = [Sales - Variable Costs - Fixed Costs] * (1 - tax)+ tax * Depreciation

Annual OCF = [$12,400,000 - 32% * $12,400,000 - $240,000] * (1 -0.24) + 0.24 * $606,111.11

Annual OCF = $8,192,000 * 0.76 + 0.24 * $606,111.11

Annual OCF = $6,371,386.67

NPV = -$5,455,000 + $6,371,386.67 * PVIFA(9%, 9)

NPV = -$5,455,000 + $6,371,386.67 * 5.99525

NPV = $32,743,055.93

EAC = NPV / PVIFA(9%, 9)

EAC = $32,743,055.93 / 5.99525

EAC = $5,461,499.68

Read more about Equivalent annual cost

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5 0

2 years ago

1. Select the most likely consequence of making credit card payments late.

ruslelena [56]

1. Guess that the only correct consequence of making credit card payments late is: <span>fees and paying the default interest rate on the balance. There's a non-fee period which is defined by a bank.

2. The most obvious option is: </span><span>Zach and Zach's parents credit may be damaged. He can forget to make the credit payments in time and the bank can make e decision to less the credit amount.

3. As far as I remember, i</span>f interest rates rise, the prices of bonds will d<span>ecrease. It's the cost of borrowing, so that's why I chose that option.

4. I'd choose this one. </span><span>C. About $6.67. First let's discover your daily periodic rate. We need to do this: 16/365 this will be approximately 0.04%.
And now we can count monthly charge. 500*0.0004*30 = 6 (approximately)</span>

5 0

3 years ago

Read 2 more answers

You are working for a company that is considering investing in a foreign country. Investing in countries with different traditio

DaniilM [7]

Answer:

The Foreign Direct Investment Confidence Index is a measurement of the level of confidence that top executives such as CEOs and CFOs display when it comes to investing in different countries.

The index is constructed by surveying top executives on their opinion about how economic policy increases or decreases their desire to invest in specific countries.

The top 25 countries on the the FDI list are:

United States
Germany
Canada
United Kingdom
France
Japan
China
Italy
Australia
Singapore
Spain
Netherlands
Switzerland
Denmark
Sweden
India
South Korea
Belgium
New Zealand
Ireland
Austria
Taiwan
Finland
Norway
Mexico

As it can be seen, developed nations dominate the top spots on the list. The only developing countries on the top 25 are China, India, and Mexico.

6 0

3 years ago

Mary Graham worked as a real estate agent for Piedmont Properties for 15 years. Her annual income is approximately $100,000 per

brilliants [131]

Answer and Explanation:

The computation is shown below:

a. The pre tax accounting profit is

= Revenue - operating expenses - salaries - depreciation - interest on loan

= $2,000,000 - $250,000 - $1,500,000 - $5,000 - ($500,000 × 15%)

= $2,000,000 - $250,000 - $1,500,000 - $5,000 - $75,000

= $170,000

b. The pre tax economic profit is

= Revenue - operating expenses - salaries - foregone income - actual depreciation - interest on loan

= $2,000,000 - $250,000 - $1,500,000 - $100,000 - $20,000 - $75,000

= $55,000

The actual depreciation is

= $50,000 - $30,000

= $20,000

c. The explicit cost is the cost which includes wages & salaries, operating expense, depreciation expenses etc while the implicit cost includes the opportunity cost and annual depreciation cost

4 0

3 years ago

Kim Thorsten uses rationale to make decisions for project implementation. She believes that the right decisions can be made only

vivado [14]

Answer: b. thinking

Explanation:

Kim Thorsten has the personality type known as thinking. People like her are logical when they make decisions which means that they rely less on emotion and use rationale and evidence to make decisions.

These people are pragmatists and will only make a decision that they believe is objectively the best one after considering other options. This is what Kin does and why she is under thinking.

3 0

3 years ago