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3 years ago

Sam's total revenue from pilot training classes equaled $90,400. Sam's implicit costs for this year are equal to

Business

1 answer:

Vanyuwa [196]3 years ago

6 0

Answer: $45,600

Explanation:

The Implicit cost is the opportunity cost. In other words, it is cost that was incurred because a revenue opportunity was sacrificed.

Sam sacrificed his salary as a pilot, his interest payment and the building he could be renting out.

His total implicit cost is;

= 40,000 + (10,000 * 6%) + 5,000

= $45,600

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Changes in the prices of key commodities have a significant impact on a company's bottom line. For virtually all companies, the

Anna11 [10]

Answer:

Explanation:

A) Energy can be both a fixed cost and a variable cost for a company. This is due to the sense that energy in the form of fixed electricity bill even when no production takes place (telephone bill), a fixed cost and electricity bill when production takes place would be a variable cost

B) An increment in fixed cost will shift the ATC curve to the right while the MC curve would remain the same because MC is the change in variable cost as output increases and is not related to fixed cost.

C) Corn cost is a variable cost for ethanol producer as each unit of corn is used to produce ethanol and thus use of corn is reliant upon how much ethanol is produced. This makes corn a variable input dependent on the production of output, therefore, the cost of corn is variable.

D) An increment in the variable cost will shift the ATC curve to the right and individual MC curve to the right.

5 0

3 years ago

Assume that you will be opening a savings account today by depositing $100,000. The savings account pays 5 percent compound annu

Oksi-84 [34.3K]

Answer:

5000

Explanation:

100,000x5%= 5000

5000x4 years= 20,000x5%= 1000

5000x5=25,000x5%= 1250

1250+ 1000= 2250

R= 1750

5000-2250-1000= 1750

I might be wrong

7 0

2 years ago

Using the picture of the supply and demand curves below, identify the point which

Doss [256]

Answer:

c is the correct represent the equilibrium price if I am not wrong

Explanation:

sry if I am wrong

8 0

2 years ago

The only producer of chocolate bunnies in the world, Choco's Bunny Company, recently expanded its production capacity from 1,000

Sophie [7]

Answer:

19.82%

Explanation:

Midpoint method = Q2 - Q1 / [(Q2 + Q1) / 2] / P2 - P1 / [(P2+P1) / 2]

3.33 = 2000 - 1000 / [(2000 + 1000) / 2] / P2 - P1 / [(P2+P1)/2]

3.33 = 0.66 / (P2 - P1) / [(P2+P1)/2]

By cross multiplying we have

0.66 = 3.33 [ (P2 - P1) / [(P2+P1)/2]

divide both sides by 3.33

19.82% = The mid point change in price.

5 0

3 years ago

Simon Software Co. is trying to estimate its optimal capital structure. Right now, Simon has a capital structure that consists o

lidiya [134]

Answer:

14.35%

Explanation:

Simon Software Co

rs= 12%

D/E = 0.25

rRF= 6%

RPM= 5%

Tax rate = 40%.

We are going to find the firm’s current levered beta by using the CAPM formula which is :

rs = rRF+ RPM

12%= 6% + 5%

= 1.2

We are going to find the firm’s unlevered beta by using the Hamada equation:

=bU[1 + (1 −T)(D/E)]

Let plug in the formula

1.2= bU[1 + (0.6)(0.25)]

1.2=(1+0.15)

1.2= 1.15bU

1.2÷1.15

1.0435= bU

We are going to find the new levered beta not the new capital structure using the Hamada equation:

b= bU[1 + (1 −T)(D/E)]

Let plug in the formula

= 1.0435[1 + (0.6)(1)]

=1.0435(1+0.6)

=1.0435(1.6)

= 1.6696

Lastly we are going to find the firm’s new cost of equity given its new beta and the CAPM:

rs= rRF+ RPM(b)

Let plug in the formula

= 6% + 5%(1.6696)

= 14.35%

3 0

3 years ago