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3 years ago

The point of maximum profit is the point at which the marginal cost equals the-

Business

1 answer:

Umnica [9.8K]3 years ago

4 0

Correct answer:

<h2>A. Marginal revenue.</h2><h2>Explanation:</h2>

Maximizing Gains. Statisticians show us that a corporation can maximize its value by delivering at the level where marginal revenue equals marginal cost. As long as marginal revenue is higher than the marginal value, it returns to generate further. Each computed unit sold will attach further to revenue than to costs.

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On April 1, the company retained an attorney for a flat monthly fee of $2,000. Payment for April legal services was made by the

olga55 [171]

Answer:

Journal Entries

Date Account Titles and Explanation Debit Credit

April 30 Salaries expenses $4,800

($12,000/5) * 2

Salaries payable $4,800

(To record the Accrual of salaries expense)

May 30 Salaries Expenses

($12,000/5)*3 $7,200

Salaries payable $4,800

Cash $12,000

(To record the payment of salaries expenses)

6 0

3 years ago

Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return fro

goblinko [34]

Answer:

Project A Project B

Initial investments ($170,000) ($115,000)

CF Year 1 $42,500 $34,500

CF Year 2 $58,500 $52,500

CF Year 3 $82,795 $68,500

CF Year 4 $92,900 $68,500

CF Year 5 $67,500 $68,500

using an excel spreadsheet and the IRR function, the internal rate of return of each project is:

Project A's IRR = 26.02%
Project B's IRR = 36.31%

We can use the discount rate (12%) to calculate the projects' NPV, we do not need it to calculate their IRR:

Project A's NPV = $70,855
Project B's NPV = $88,815

6 0

3 years ago

You are considering a project with projected annual cash inflows of $32,200, $41,800, $22,900 for the next three years, respecti

mestny [16]

Answer:

The value of the project today is $75,866

Explanation:

Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

Years 1 2 3

Cash Flows $32200 $41800 $22,900

Discount Factor 14% 0.8772 0.7695 0.6750

Present Values $28,245.61 $32,163.74 $15,456.85

Net present value = $75,866.20

7 0

3 years ago

Clemente Co. owned all of the voting common stock of Snider Co. On January 2, 2012, Clemente sold equipment to Snider for $125,0

bonufazy [111]

Answer:

$60,000

Explanation:

Sales Price $125,000

Less BV $140, 000

Loss on Sale $15,000

Equipment transferred at BV (Cost $140,000

Less Accumulated Depreciation. $40,000 $100,000 Depreciation.

For 2012

($100,000/5) $40,000 = $60,000

Therefore the Book Value at 12/31/2012 is $60,000

6 0

3 years ago

Marigold corp. has 634000 shares of $10 par value common stock outstanding. during the year marigold declared a 13% stock divide

Vera_Pavlovna [14]

No. of shares outstanding before stock dividend = 634000

Price per share = $46

Stock dividend issued (shares issued) = 634000 x 13%

= 82,420

Value of stocks issued as stock dividend = 82420 x $46 = $3,791,320

No. of shares outstanding after stock dividend = 634,000 +82,420

=716420

Cash dividend = 716420 x 0.60

= 429,852

Total reduction in retained earnings = total value of dividend issued

= $3,791,320 + $429,852

= $4,221,172

3 0

3 years ago