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horsena [70]
3 years ago
5

So why it is a ration decision to make sure the marginal benefits outweighs the marginal costs? (Be detailed, you can use exampl

es.)​
Business
1 answer:
Rzqust [24]3 years ago
6 0

Answer:

For the business to make profits

Explanation:

Marginals revenue is the additional income realized from the sale of an extra unit. It is the revenue that a firm will gain by selling one more unit of a product or service.

Marginal cost is the expense incurred in the production of one more unit of a product.  A business compares marginal revenue to marginal cost to decide if it will cease or continue with production and selling activities.

For a business to continue selling and make profits, marginal revenue must be greater than the marginal cost. In other words, the revenue realized by selling one extra unit must exceed the cost of producing that item. Selling one more unit when the marginal cost is more than the marginal revenue will result in a loss.

If the marginal revenue from a computer is $40 and the marginal cost is $50,  selling on extra computer results in a loss of $10. But if the marginal revenue from the same computer is $60, the sale on one more unit will be a gain of $10.

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Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Tra
Marizza181 [45]

Answer:

It is $9,000 (B)

Explanation:

Total paid dividends paid = $60,000

Return on Investment = $60,000 *15%

                                    =$9,000.

Gaw Company investment in Trace Corporation will be treated as Investment Assets. In its book ,it can only recognize its share of dividend paid as return on investment.

Gaw Company cannot recognize its share of entire net income of Trace because it doesn't have controlling interest (i.e subsidiary) in the company neither does it have significant influence (i.e associate).

3 0
3 years ago
REITs pay dividends in order to retain their favorable tax status. As the next chapter on stock explains, corporate dividends ar
meriva

Answer:

Correlation coefficients relating the distributions to FFO = 0.8393

Correlation coefficients relating the distributions to EPS = –0.0880

Explanation:

Let X represents distributions, Y represents FFO, and, Z represents EPS.

Note: See the attached excel file for the calculations of Means of X, Y and Z as well as other values.

Therefore, we have:

Correlation coefficients relating the distributions to FFO = (Total of (X - Mean of X) * (Y - Mean of Y)) / ((Total of (X - Mean of X)^2) * (Total of (Y - Mean of Y)^2))^0.5 = 0.7529 / (0.8554 * 0.9408)^0.5 = 0.8393

Correlation coefficients relating the distributions to EPS = (Total of (X - Mean of X) * (Z - Mean of Z)) / ((Total of (X - Mean of X)^2) * (Total of (Z - Mean of Z)^2))^0.5 = –0.1391 / (0.8554 *  2.9200)^0.5 = –0.0880

Download xlsx
7 0
3 years ago
Suppose that France and Austria both produce jeans and stained glass. France's opportunity cost of producing a pane of stained g
bija089 [108]

Answer:

By comparing the opportunity cost of producing stained glass in the two countries, you can tell that <u>FRANCE</u> has a comparative advantage in the production of stained glass and <u>AUSTRIA</u> has a comparative advantage in the production of jeans.

France can gain from specialization and trade as long as it receives more than <u>3</u> of jeans for each pane of stained glass it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than <u>1/11</u> of stained glass for each pair of jeans it exports to France.

Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of jeans) would allow both Austria and France to gain from trade?

  • a. 4 pairs of jeans per pane of stained glass
  • d. 7 pairs of jeans per pane of stained glass

The price range that allows both countries to gain from trade is more than 3 but less than 11 pairs of jeans per pane of stained glass.

6 0
3 years ago
Simon is a manager in a manufacturing unit. He grades the inventory according to the products’ level of importance while storing
Morgarella [4.7K]

Answer:

C: ABC classification

Explanation:

i took the test on edmentum / plato

3 0
3 years ago
3. The _______ stage of the body's reaction to stress can actually be a positive time depending on the stressor.
Sedbober [7]
<span>The alarm stage of the body's reaction to stress can actually be a positive time depending on the stressor.</span>
3 0
3 years ago
Read 2 more answers
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