Answer:
The after-tax cost is $23,940
Explanation:
For computing the after-tax cost, first we have to compute the present value which is shown below:
Present value = Bill payment × marginal tax rate
= $38,000 × 37%
= $14,060
So, after tax value would equal to
= Bill payment or Pre tax value - Present value
= $38,000 - $14,060
= $23,940
The contribution margin approach helps managers in short-tern decision making because it reports costs and revenues at their current value.
The contribution margin ratio/approach allows companies to determine their profits they can make from a product minus variable costs.
Answer:
B) dividing the change in total cost by the change in output
Explanation:
Marginal cost(MC) is the cost incurred as a result of producing additional units of goods and services. It is calculated by dividing a change in total cost by a change in output.
That is,
Marginal cost(MC)= change in total cost(TC)/ change in output
Total cost(TC): This is the addition of fixed and variable cost in production.
Total cost(TC)= fixed cost (FC)+variable cost (VC)
Fixed cost (FC) are cost that doesn't change during the production process such as buildings, machineries and furniture.
Variable cost (VC) are cost that changes or are used up during production process such as raw materials.
An injunction is a strong, authoritative warning or order to do something. An injunction will let a person know how they should be behaving, when they are acting up and how to properly follow directions. A person giving a command or instructions is often using an injunction.
