Answer:
The correct answer is E)
Explanation:
Capital budgeting is an accounting method that corporations use to decide which planned acquisitions of fixed assets will be approved and which should be refused.
Some examples of Capital Expenditures include:
- Construction of an additional building
- Procurement of delivery vehicles
- Procurement of new equipment
- Rehabilitation of existing equipment
If one of the criteria for classification under Capital Expenditure is that it must be in the plan, then none of the above items mentioned in the question will fly.
Monies have already been expended on the options A, B, and C.
Option D is an offer to purchase an existing asset, not a planned investment. Therefore it also does not qualify.
Hence the correct answer is E.
Cheers!
16% is the answer.
<u>Explanation:</u>
<u>The following is used in order to calculate the cost of the retained earnings.
</u>
The Calculation of cost of retained earnings by using bond yield plus the risk premium method
= Long term bond yield + the risk premium
The Long term bond yield = 12 percent
The risk premium = 4 percent
Cost of retained earnings = 12 percent plus 4 percent = 16 %
Therefore, the correct option will be with the 16 percent
.
Answer and Explanation:
The computation is shown below:
Fixed cost is
= $500,000 + $1,000,000
= $1,500,000
And, the marginal cost is
= $0.25 + $0.10
= $0.35 per paer
Now
as we know that
AFC = FC ÷ Q
Now for At 1,000,000 papers,
AFC is
= 1,500,000 ÷ 1,000,000
= $1.50/mo
At 800,000
, it would be
AFC = 1,500,000 ÷ 800,000
= $1.875/mo
MC = $0.35 per paper and the same is not changed
Now for break even, the average total cost is
ATC = AFC + AVC
ATC = FC ÷ Q + VC ÷ Q
VC = MC × Q
ATC = FC ÷ Q + MC
ATC = FC ÷ Q + 0.35
At Q = 1,000,000,
ATC = 1.50 + 0.35
ATC = $1.85
At Q = 800,000
, it would be
ATC = 1.875 + 0.35
= $2.225
As it can be seen that
The AFC changes from 1.50 to 1.875 which shows an increment of 0.375.
The MC remains constant or same at 0.35 as the printing and delivery costs per paper are remain same
And, The minimum amount that we must charge to break even rises i.e. from 1.85 to 2.225. That is a rise of 0.375
Answer:
1. Robust middle class growth
2. Technological advancements
3. a) A beer and wine selection primarily made up of U.S. brands
b) A policy forbidding employees from dating each other
d) A friendliness policy encouraging employees to smile at customers
e) Plastic bags
Explanation:
Middle class growth in different countries in recent times have increased the sake of smartphone and tablets globally
Technological advancements in the second question would be the only cause of better technologies such as the use of video teleconferencing in the example
The people in this country would not like the listed options as shown here
