Answer:
If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.
Ingredients such as sugar and butter would be examples of variable costs.
Fixed costs are cost that remain constant no matter the amount of output. Fixed costs examples are rent, loan, salaries.
Variable costs are cost which change with a change in output as the business provides more services. Variable cost examples are cost of raw materials, commissions and so on.
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<span>The element of the promotional mix that coca-cola is using in this scenario is known as sales promotion. As coca-cola is paying for this inadvertently via their cost of goods accounts.</span>
Answer:
Excess supply
Explanation:
Equilibrium price is the price where the demand curve equals the supply curve.
When price is above the equilibrium price, quantity supplied increases.
According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
If price is below the equilibrium price, there would be excess demand.
I hope my answer helps you
