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4 years ago

If production increases by 30%, how will total variable costs likely react?

1 answer:

6 0

Variable cost is a function of the production rate. variable cost are the cost the increases when the production rate increases and also decreases when the production rate decreases. some variable cost are the raw materials, it always depends how much is your projected production. so the variable cost likey to inreased by 30 %

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If a donut shop sells a dozen donuts for $6.00, what would the cost of 9 donuts be at the same rate?

larisa86 [58]

To solve this question, first we need to find out the price of a single donut.

12 donuts = $ 6.00
1 donuts = $6.00 / 12

1 donuts = $ 0.50

After that, we just need to multiply the price for a single donut with the required amount (9), which will be:

9 x $ 0.50 = $ 4.50 . . . . for 9 donuts

3 0

4 years ago

For each scenario, select the appropriate distribution density classification.1. Snack Time-Frito-Lay knows that hunger can stri

Karolina [17]

Answer:

1. Intensive Distribution

2. Selective Distribution

3. Intensive Distribution

4. Exclusive Distribution

5. Selective Distribution

6. Exclusive Distribution

Explanation:

Intensive Distribution is the one in which the product is available almost everywhere. That the product is easily available and the company ensures that it has a wide range of consumers.

Selective Distribution is the one in which the product is available only at some identified places, as for example the 5. point the apple phones are available usually at apple stores or some other specified mobile sellers, thus it is easily available yet at some limited shops only.

Exclusive Distribution is the one in which the product is available only at some exclusive shops, as in the 4th point and 6th point the luxury brand is not easily available and rather at only a few outlets of the company.

8 0

3 years ago

Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manuf

Firdavs [7]

Answer:

The machine should be leased because it is cheaper when compared to buying the machine.

Explanation:

To determine which option kiddy should choose , we are to calculate the net present value of buying the machine and the present value of payments thay kiddy would make if they lease the equipment.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-161,000

Cash flow each year from year 1 to 11 = $-6,000

Cash flow in year 12 = $-6,000 + $11,000 = $5,000

I = 11%

NPV = $-196,809.89

Present value of lease payment

Cash flow each year from year 1 to 11 = $-26,000

I = 11%

PV = $-161,369.40

The machine should be leased because it is cheaper when compared to buying the machine.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

Present value can be calculated using the same steps as above

I hope my answer helps you

8 0

3 years ago

You deposit $2,000 in a savings account and a year later you have $2,100. Meanwhile, the consumer price index rises from 200 to

qaws [65]

Answer:

nominal interest rate = 5%

real interest rate = 3%

Explanation:

given data

deposit previous = $2,000

deposit present = $2,100

CPI consumer price index rises = 200 to 204

to find out

nominal interest rate and real interest rate

solution

we get here first nominal interest rate that is express as

nominal interest rate = ( deposit present - deposit previous ) ÷ deposit previous × 100 ..........................1

put here value we get

nominal interest rate = $\frac{2100-2000}{2000}$ × 100

nominal interest rate = 5%

and

now we get here inflation rate that is

inflation rate = ( CPI present - CPI previous ) ÷ CPI previous × 100 .............2

inflation rate = $\frac{204-200}{200}$ × 100

inflation rate = 2%

and

real interest rate will be as

real interest rate = nominal interest rate - inflation rate .................3

real interest rate = 5% - 2%

real interest rate = 3%

5 0

4 years ago

Air Destinations issues bonds due in 10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments

olga nikolaevna [1]

Answer: $471,324.61

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value at maturity

Coupon payments = 500,000 * 11% * 1/2 years = $27,500

Periodic yield = 12%/ 2 = 6% per semi annual period

Periods = 10 * 2 = 20 semi annual periods

Coupon payment is constant so it is an annuity.

Price of bond = Present value of annuity + Present value of face value at maturity

= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods

= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰

= $471,324.61

8 0

3 years ago

If production increases by​ 30%, how will total variable costs likely​ react?

If production increases by 30%, how will total variable costs likely react?