Answer:
B. False
Explanation:
Flotation costs are cost that are concerned with issuing new common stock. It is the amount of money or cost incurred by an organization when offering its securities to the public. The cost may include legal fees, auditing fees and registration fees. When the flotation cost goes higher, firms are more likely to use debts rather than preferred stock. This is simply because debt is lesser than both common stock and preferred stock. Also, its fallacy to think that preferred stock doesnt have flotation cost. Its only that its not as high as the ones for new common equity.
Answer:
$40,500.
Explanation:
Calculation for Koch's adjusted basis in machine 2 after the exchange
Based on the information given we were told that Machine 1's had adjusted basis of the amount of $40,500 at the time of the exchange which means that Koch's adjusted basis in machine 2 after the exchange will the amount of $40,500 which is Machine 1's adjusted basis .
Therefore Koch's adjusted basis in machine 2 after the exchange will be $40,500
Answer:
Pine Street should sell finished bookcases because they have a higher contribution margin.
Explanation:
We compare the contribution margin of the two categories to find out whether Pine Street should sell unfinished or finished bookcases.
Pine Street Inc.
Unfinished bookcases
Contribution Margin
Sales Price $58.10
Less Production costs
Variable Costs $37.49
<u>Fixed Costs $10.50 (47.99)</u>
<u>Contribution Margin $ 10.11</u>
Pine Street should sell finished bookcases because they have a higher contribution margin. It is almost double of the unfinished book cases contribution margin.
Pine Street Inc.
Finished bookcases
CONTRIBUTION MARGIN
Sales Price $74.91
Less Production costs
Variable Costs $37.49 + $5.79 = $ 43.28
<u>Fixed Costs $10.50 $ (53.78)</u>
<u>Contribution Margin $ 21.13</u>
Answer:
DiscountHaven Inc. is a large chain of hypermarkets. It has cost benefits due to its extensive operation. The company's marketing and sales, logistics, administrative, and other such related costs get divided between a large number of product units stocked in its stores. This makes it difficult for smaller retail stores and supermarkets to compete against DiscountHaven's low prices. Thus, DiscountHaven has a competitive advantage due to its economies of scale.
Explanation:
Economies of scale are the economic benefits that are realized by operating on a larger scale. In general, the average cost per unit of output decreases with an increasing scale because fixed costs are spread over more units of output. Operational efficiency is often greater with increasing scale, which in turn leads to lower variable costs. When the average costs increase with an increasing scale, this is called the disadvantage of scale.
When an industry is characterized by economies of scale, it can lead to a monopoly or oligopoly. Only large companies can then produce economically so that the barriers to entry for new market players are high.
This scenario would best be viewed as a QUID PRO QUO SEXUAL HARASSMENT.
Quid pro quo sexual harassment is the type of sexual harassment that occurs in the workplace, in which an higher authority figure offers or drop a hint that he or she will give rewards to an employee under him [or her] in exchange for sexual gratification.
