Raw Materials Inventory $XX Accounts payable
With the information given in the problem, we know that 80% of the time the brand will be recognized.
As we know, 8/10 is the same thing as 80%.
The probability that exactly 8 people will recognize the brand is 100%.
Let me know how this works out.
Answer:
b. greater in the beef market than in the milk market.
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Demand is elastic if quantity demanded is more sensitive to changes in price. A small change in price leads to a greater change in quantity demanded.
Demand is inelastic if when price changes, there is little or no change in quantity demanded.
If there's bovine fever which decreases the population of beef cattle by 50 percent, supply would fall and price would rise. As a result of the rise in price, quantity demanded of beef would fall more than the quantity demanded of milk because beef has an elastic demand while milk has an inelastic demand.
I hope my answer helps you
Answer:
In general, the <u>higher</u> the risk of a firm as perceived by its existing and potential investors, the greater is the firm’s weighted average cost of capital (WACC).
- If a firm is considered to be risky, they will get debt at a high rate to compensate for the risk making WACC greater.
The calculation of a firm’s weighted average cost of capital should be based on the <u>after-tax</u> cost of the dollar of financial capital raised.
- Interest is tax deductible so WACC is calculated net of taxes to cater for this.
It is generally believed that the proportions, or weights, used in the calculation of a firm’s weighted average cost of capital should be based on the market values of the firm’s capital sources. This is because the market value weighting system is more consistent with maximizing the value of the firm’s <u>Shareholder wealth.</u>
- Market Values are the true reflection of shareholder wealth and this is what the company should aim to maximise.
Although the use of market value weights is theoretically superior to the use of book value weights in the calculation of a firm’s weighted average cost of capital (WACC), firms often use book value weights due to their relative stability compared to the daily changes in market values. <u>True</u>
- Market values tend to fluctuate quite often so it is easier for companies to use book value amounts.
A firm’s new investments, existing assets, and capital structure affect its overall degree of risk and, in turn, its weighted average cost of capital. <u>True</u>
- The assets and potential assets that a company has as well as how it funded those assets determine just how risky the company is and as earlier mentioned, the riskier the firm, the higher the WACC so risk does have an effect on WACC.
Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
<h3>
What is manufacturing?</h3>
- Manufacturing is the process of creating or producing items using equipment, labor, machines, tools, and chemical or biological processing or formulation.
- It is the essence of the economy's secondary sector.
- The phrase can relate to a wide range of human activities, from handcraft to high-tech, but it is most usually applied to industrial design, which involves the transformation of raw materials from the primary sector into finished commodities on a big scale.
To find which option will Karla pick:
- If the demand for Karla's candles is 25,000.
- Total Cost in Machine A = 25000 + 0.1*25000
- = $ 27500 Total
Therefore, Karla would pick option (B) uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Know more about manufacturing here:
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The correct question is given below:
Karla's candle factory is considering two different manufacturing options.
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
If the demand for Karla's candles is 25,000, which option should she pick?
