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weqwewe [10]
3 years ago
5

Miles is three years old and his grandparents have given him money to spend at the toy store as a birthday present. Miles' numbe

r one favorite thing to play with is building blocks. Assume that Miles' utility will increase by 100 units if he purchases a new set of building blocks and and it will cost him $50. His second favorite thing to play with is fire trucks. Fire trucks cost $20 and each new fire truck improves Miles' utility by 80 units. His third favorite toy is trains. Trains improve his utility by 15 units and cost $5 each. Miles does not have to spend all of his money at once, but wants to get as much happiness as possible from his money. If Miles buys only one toy, which should he buy to maximize his utility? building blocks a fire truck a train
Business
1 answer:
KATRIN_1 [288]3 years ago
7 0

Answer:

The correct answer is Fire trucks.

Explanation:

According to the scenario, the given data are as follows:

1. Building blocks buy = $50

Increase in units = 100 units

2. Fire trucks buy = $20

Increase in units = 80 units

( which means in $50 Fire trucks can be bought 2.5× existing units)

So, In $50 Fire trucks increase in unit = 80 units × 2.5 = 200 units

3. Trains buy = $5

Increase in units = 15

( which means in $50 Trains can be bought 10× existing units)

So, In $50 Trains increase in unit = 15 units × 10 = 150 units

Hence, Fire trucks will give the maximum utility.

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The Mary Company primarily sells dishes, and recently purchased a cardboard box company. Mary's new cardboard box division has n
fgiga [73]

Answer: $1.50

Explanation:

Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.

We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.

8 0
2 years ago
Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) T
inn [45]

Answer:

9.315%

Explanation:

The computation of WACC is shown below:-

But before that we need to do the following calculations

PV -$1,000

PMT 80

N 20

FV $1,000

Compute IY 8%

After tax cost of Debt = Before tax cost of debt × (1 - tax rate)

= 8% × (1 - 25%)

= 6%

According to the CAPM,

Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)

= 4.5% + (1.2 × 5.5%)

= 11.10%

Weight of Equity = 100% - 35%

= 65%

WACC = (Weight of Equity × Cost of Equity) + (Weight of debt × Cost of debt)

= (65% × 11.10) + (35% × 6)

= 9.315%

8 0
3 years ago
At its peak at the end of 1999, Microsoft had a market cap of $600B. PC sales were booming and most PCs ran on Microsoft softwar
Slav-nsk [51]

Answer: C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down.

Explanation:

Market Cap = P/E ratio * Earnings

Market cap is dependent on both the P/E ratio and Earnings as shown by the formula and as shown on the graph, the P/E ratio kept on decreasing which means that for the Market Cap to decrease, the downward pull of the P/E ratio must have overshadowed the growth in earnings such that the Market Cap went down instead of up.

For instance, if the earnings were $40 billion and the P/E ratio was 15, Market Cap would be $600 billion.

If earnings increased to $45 billion but P/E ratio decreased to 10, Market Cap would become $450 billion.

6 0
3 years ago
As observed by robert e. kelley, _____ is an essential quality of effective followers.
nordsb [41]

As observed by robert e. kelley, Substitutes for leadershipis an essential quality of effective followers.

<h3>What is leadershipis ?</h3>

The ability of a person, group, or organization to "lead," influence, or direct other people, groups, or entire organizations is referred to as leadership, both as a field of study and as a practical talent. The term "leadership" is frequently seen as a contentious one. The subject is debated in specialized literature from numerous points of view, occasionally contrasting Eastern and Western leadership styles as well as (within the West) North American versus European styles.

Leadership is described as "a process of social influence where a person can enlist the aid and support of others in the fulfillment of a common and ethical task" in U.S. academic institutions.

To learn more about leadershipis  from the given link:

brainly.com/question/26909351

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8 0
1 year ago
n a company's merit pay program, an individual's compa-ratio represents the individual's pay relative to company's average pay f
Mademuasel [1]

Answer:

The individual's pay relative to company's average pay for that position.

Explanation: Compa-ratio is a term used by Recruitment managers in organisations to determine what a new recruit is likely going to be paid.

This ratio compares the person's position to those of others with an industry and know the average payment to offer the person. For example,a person with a Compa-ratio of 0.5 means the people is earning 50% less the average salary for his or her position.

8 0
3 years ago
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