It is most likely going to rise back up. Everybody has a down point at some point or time but they always rise back up!
The economics discipline focuses on understanding trade-offs in decision-making. The above statement is true.
<h3>
What is economics?</h3>
- The social science of economics focuses on the creation, exchange, and consumption of goods and services.
- Economics is the study of how economies function and the activities and interactions of economic agents.
- Microeconomics is a branch of economics that studies individual actors and markets, as well as how they interact and what happens as a result of those interactions. Examples of individual agents include homes, businesses, buyers, and sellers.
- Macroeconomics examines the economy as a system in which production, consumption, saving, and investment coexist, as well as factors influencing it such as the employment of labor, capital, and land resources, currency inflation, economic growth, and public policies that have an effect on these components.
To learn more about economics with the given link
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m≥95
Explanation:
Since, we have two option given.
forming the equation for Company A
As company A pay fixed (intercept) of $72.5. Moreover, with every one mile driven company A pays $0.4 (slope)
Using the equation
y=mx+c
where m is slope, and c is intercept.
In the case of company A. slope is $0.4, and intercept is $72.5.
charges= 0.4m+72.5
Forming the equation for company B
charges=0.9m+25
Now, as per the requirement of question we must find the value of m, where Company A will charge no more than company B
<em>That means,</em>
<em>we have to find the value of m where charges from equation of company A should be less than or equal to charges from equation of company B</em>
<em>in other words,</em>
<em>0.4m+72.5 ≤ </em> 0.9m+25
solving for m,
Step 1
72.5-25 ≤ 0.9m-0.4m
Step 2
47.5≤ 0.5m
Step 3
47.5/0.5≤ m
Step 4
95≤ m
in other words, m≥95
Answer:
a) $0.5145 million
b) $7.35 million
Explanation:
Given:
Permanent debt outstanding = $35,000,000
Expected marginal tax rate = 21%
a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.
To find annual interes tax shield use the formula below:
Annual interest tax shield =Total par value of Debt × interest rate × tax rate
= $35,000,000 × 7% × 21%
= $35,000,000 × 0.07 × 0.21
= $514,500
Annual interest tax shield = $0.5145 million
b) What is the present value of the interest tax shield, assuming its risk is the same as the loan?
Use the formula:
Present value of the interest tax shield = Annual interest tax shield /loan interest rate
= $514,500 / 7%
= $7,350,000
present value of the interest tax shield = $7.35 million
Answer:
Sales less variable production, variable selling, and variable administrative expenses.
Explanation:
On a contribution margin income statement the variable administrative and variable selling are considered as variable cost and used to determinate the contribution margin.
Contribution margin =
sales revenue - total variable cost
the fixed cost are listed below the contriution,
once subtracted from the contribution, the rest is the net income.
