Answer:
diminishing marginal returns
Explanation:
Based on the information provided within the question it can be said that this scenario indicates that there are diminishing marginal returns. Like mentioned in the question this refers to the decrease in marginal output as additional factors of production are introduced into the production process. Which in this case the additional factors would be more workers, since adding an additional worker seems to lower the marginal product.
Answer:
(A)
240,000 margin of safety in dollars
20% as percent of sales
(B)
actual sales= 11,250,000
Explanation:
1,200,000 - 960,000 = 240,000 margin of safety in dollars
240,000/1,200,000 = 0.2 x 100 = 20%
For B we will determinate the BEP in dollars and then add the 20% margin of safety.
BEP = 9,375,000
BEP x ( 1+margin of safety) = actual sales
BEP x (1 + 20%) = 11,250,000
Answer:
$165,000
Explanation:
Free cash flow is the net cash cash flow available for the shareholders or for the reinvestment after paying all capital expenditure.
The Depreciation is already adjusted in the Cash Flow from operating activities.
Free Cash Flow = Cash Flow from operating activities - Dividend payment - Capital expenditure
Free Cash Flow = $335,000 - $60,000 - $110,000 = $165,000
Current and Long term liabilities has nothing to do in free cash flow calculations.
Answer:
4 years and 2 months
Explanation:
The project's payback period is the length of time that the future cash flows take to equal the initial investment of the project.
Initial Investment = $8 million
Annual cash flows = $1.75 million
It will take 4 years and 2 months ($1 million /$8 million x 12) for annual cashflows to equal the Initial Investment of $8 million.
