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4 years ago

If fixed costs increased and variable costs per unit decreased, the break-even point would_______________.

Business

1 answer:

Aleksandr-060686 [28]4 years ago

5 0

Answer:

The correct option is D,cannot be determined from the data provided

Explanation:

Break-even points in units=fixed costs/contribution margin per unit

Contribution margin per unit =selling price -variable cost

In other words, from the scenario, it is clear that the numerator fixed costs has increased and also a reduction in variable cost per unit implies an increase in contribution margin per unit since a lesser variable cost is being deducted from selling price.

The impact of both increases in fixed costs and contribution margin cannot be determined except if more details is provided which will give further guidance regarding which of the two increased at a higher rate compared to the other.

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Cora, a female, and Dom, a male, are employees of Equipment Leasing Corporation. Cora regularly e-mails sexually explicit images

hjlf

c. quid pro quo harassment.....

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4 years ago

Sagoff, "At the Shrine of Our Lady Fatima or Why Political Questions Are Not All Economic."

arlik [135]

Answer:

Sagoff's cost-benefit approach establishes that the value of a thing is determined by how much people are willing to pay for it, so the only important values are the ones that the market can assign. This is why that approach is not suitable for explaining our duties with our environment, since we cannot pay for it and the market cannot assign any value to the environment.

Sagoff is a neo-Kantian ethicist because he also believes that individuals were the judges of value (they could assign value to things) not only for them but for their whole communities.

Sagoff's approach differs from Kant's approach since Sagoff believes that the cost-benefit approach doesn't apply to all the goods and services, especially the environment. He believes that the environment has an intrinsic value and therefore is an end to itself, while Kant believed that only humans had intrinsic value and could be an end to themselves.

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3 years ago

Assume that Botswana Life Insurance (BOTS LIFE) pays no cash dividends currently and is not expected to for the next 5 years. It

Advocard [28]

The intrinsic value of company's share is $89.90

The share price is expected to rise in the incoming years

The intrinsic value of share remains the same when payout ratio reduces to 20%

What is the firm growth rate in each of the future years?

The growth rate of the company, which is also the growth rate for earnings per share in each of the first 5 years

Growth rate in the first 5 years=ROE*reinvestment rate

ROE=20%

reinvestment rate=100%(all earnings would be reinvested)

Growth rate in the first 5 years=100%*20%

Growth rate in the first 5 years=20%

Earnings in 5 years=current EPS*(1+growth rate)^5

Earnings in 5 years=$10*(1+20%)^5

Earnings in 5 years=$24.8832

Growth rate for year 6 and beyond=15%*(1-40%)

Growth rate for year 6 and beyond=9.00%

Earnings in year 6=$24.8832*(1+9%)

earnings in year 6=$27.122688

Out of the EPS, 40% would be paid as dividends

dividends in year 6=$27.122688*40%

dividends in year 6=$10.8490752

We can compute the share price at the end of year using the present value formula of perpetuity

share price in year 5=$10.8490752/(15%-9%)

share price in year 5=$180.81792

share price now=$180.81792/(1+15%)^5

share price now=$89.90

The fact that share price and the intrinsic value are the same implies that share price would increase over the next year and the year after because the dividends would continue to growth at a constant rate of 9%

Out of the EPS, 20% would be paid as dividends

dividends in year 6=$27.122688*20%

dividends in year 6=$5.4245376

growth rate=15%*(1-20%)=12.00%

We can compute the share price at the end of year using the present value formula of perpetuity

share price in year 5=$5.4245376/(15%-12%)

share price in year 5=$180.81792

share price now=$180.81792/(1+15%)^5

share price now=$89.90

The share price in payout ratio from 40% to 20% has no effect on the intrinsic value since the share prices are the same under the two scenarios

Find out more about intrinsic value on:brainly.com/question/14720349

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2 years ago

On 1/1/X1, Dolan Corp. pays $100,000 to retire its bonds early. At the time of the retirement, the bonds have a face value of $1

galben [10]

Answer:

2,000 loss on redemption

Explanation:

the company will recognzie considering the current value of the bonds, thus the carrying value:

as the face value is lower than carrying value there is a discoutn for the difference: 104,000 - 98,000 = 6,000

When we compare the cash outlay with the carrying value we sovle for the redemption result:

98,000 bonds are paid at 100,000 therefore 2,000 loss

bonds payable 104,000 debit

loss on redemption 2,000 debit

discount on BP 6,000 credit

cash 100,000 credit

6 0

3 years ago

How will employers respond to an increase in the minimum wage?

kherson [118]

Answer:

Explanation:

Increasing minimum wage increases the cost of hiring labour. As a result, firms would reduce the amount of labour skilled labour employed in order to reduce cost of hiring labour.

Another option, is for firms to hire more skilled labours

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3 years ago