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dezoksy [38]
3 years ago
15

A firm reports a net margin of 5.00%. The firm has 1,456,800.00 million shares outstanding. The firm has invested in a new produ

ct that will increase sales by $4,898,300.00 million this year. What will be the increase in earnings this year if the sales increase occurs?
Business
1 answer:
n200080 [17]3 years ago
8 0

Answer:

To find Earning per share, we can find this by the following formula:

Increase in Earnings Per Share = Net profit of new products / Number of shares

and

Net Profit of new products = 5% * $4,898,300 = $244,915

Increase in Earnings Per Share = ($244,915) / 1,456,800 = 16.81%

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Answer:

A simple model of a firm describes it as an entity that buys production factors – (for example, labor) and sells its output (goods and services). A firm’s input prices, which affect costs, are generally fixed in the short run (like wages, that are established by contract and must be respected during the period they were stablished), while a firm’s output prices, which affect revenue, are  adjustable (they do not depend on a contract). Therefore, an increase in the short-run price level raises revenue more than costs, so firms produce more in the short run. Consequently, the SRAS curve slopes upward.

In the long run, however, firm’s input prices are variable, and they will adjust together with the firm’s output prices, making LRAS perfectly inelastic in the potential level of production.

6 0
3 years ago
A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2900. After instal
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Answer:

correct option is A. $145  

Explanation:

given data

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interest rate = 5% per year

solution

formula for present value of perpetuity is

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put her value we get fixed cash saving per year that is

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saving per year cost =  $2900 × 0.05

saving per year cost =  $145

so correct option is A. $145  

8 0
3 years ago
On November 6, 20X7, Zucor Corp. purchased merchandise from an unaffiliated foreign company for 50,000 units of the foreign comp
fgiga [73]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

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An organization is a group of people working together, such as a neighborhood association, charity, union, or business. The word organization can be used to refer to a group or enterprise or the act of forming or establishing something.

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2 years ago
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