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saveliy_v [14]
3 years ago
15

Mary is considering hiring another worker in an assembly line for MP3 speakers. Mary knows the average product of labor is 15 sp

eakers per day. She also believes that the next worker hired will produce an extra 12 speakers per day. A speaker sells for $10. Assuming that the market for speakers is perfectly competitive, Mary should hire another worker:
a. only if the new worker's daily wage is $120 or less
b. only if the new worker's marginal product is 12 or more
c. since the marginal product is below the average product
d. only if the new worker's daily wage is $150 or less
Business
1 answer:
liubo4ka [24]3 years ago
8 0

Answer:

A) only if the new worker's daily wage is $120 or less

Explanation:

Since the new worker is expected to produce 12 speakers per day and each speaker sells for $10 each, the total additional income is $120. Since the market for speakers is perfectly competitive, then Mary should pay the worker a maximum wage equal to the additional income he provides. Off course if Mary pays a smaller wage she will earn more money.

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Your aunt has promised to give you $5,000 when you graduate from college. You expect to graduate three years from now. If you sp
ikadub [295]

Answer:

The present value of the promised gift will:

be less than $5,000.

Explanation:

The present value of $5,000 to be received in three years' time from today is less than $5,000 received.  This is explained by the time value of money concept.  If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751).  This means that $5,000 received in year 3 is less than $5,000 received today.

3 0
3 years ago
Beatrice Markets is expecting a period of intense growth and has decided to retain more of its earnings to help finance that gro
VLD [36.1K]

Answer: $16.69

Explanation:

Using the Dividend growth model, the value is:

= [Dividend 1/ (1 + required return)] + [Dividend 2/ (1 + required return)²] + [Terminal value / (1 + required return)²]

Terminal value = Dividend after 2 years / (required return - growth)

= 2.50/ (14.5% + 0%)

= $17.24

Dividend 1 = 3.60 * ( 1 -30%)                                Dividend 2 = 2.52 * ( 1 -30%)

= $2.52                                                                                     = $1.76

Market value = (2.52 / 1.145) + (1.76 / 1.145²) + (17.24/1.145²)

= $16.69

3 0
3 years ago
he following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal o
maxonik [38]

Answer:

Explanation:

1) Total direct costs for the Apparel Department $128750:

Total Direct costs of Apparel Department  

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Apparel Department manager's salary - Evendale store $11,800

Direct costs  $128,750

2) Total direct costs for the Evendale Department $173,800:

Apparel Department cost of sales - Evendale store $105,600

Store manager's salary - Evendale store $12,300

Apparel Department sales commission - Evendale store $11,350

Store utilities - Evendale store $19,200

Apparel Department manager's salary - Evendale store $11,800

Janitorial cost - Evendale store $13,550

Direct costs - Evendale store $173,800

3) Total direct costs for the Apparel Department that are also variable costs- $116950 :

Apparel Department cost of sales - Evendale store $105,600

Apparel Department sales commission - Evendale store $11,350

Direct variable costs - Apparel Department $116,950

4 0
3 years ago
Most financial advisors say you'll need about 70 percent of your pre-retirement earnings to comfortably maintain your pre-retire
brilliants [131]

Answer:

False

Explanation:

8 0
4 years ago
Read 2 more answers
David Rose Inc. forecasts a capital budget of $500,000 next year with forecasted net income of $400,000. The company wants to ma
spayn [35]

Answer:

If the company follows the residual dividend policy, it is $50,000 in dividends.

Explanation:

Dividend is calculated by using the formula:

Dividends = Net Income - Equity requirement

where, Equity requirement = Capital budget  (% Equity)

                                             = 500,000(70%)  = $350,000

∴ Dividends = 400,000 - 350,000

                    = <u>$50,000 </u>

7 0
3 years ago
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