Answer:
The answer is: D) less than average variable cost.
Explanation:
If a company shuts down its production temporarily (not permanently), it will stop receiving revenue from the goods it used to produce but at the same time it will not be spending any money on variable costs. The company will suffer losses equivalent to its fixed costs (e.g. depreciation costs, rent, etc.).
A company decides to shut down its production when the revenue it receives from selling its products doesn't even cover their variable costs. That means it is losing money by producing its goods.
The market price of a security is $50. Its expected rate of return is 14%, and the market price of the security is mathematically given as
MR=27.368
<h3>What will be the market price of the security if its correlation coefficient with the market portfolio doubles?</h3>
Generally, the equation for expected rate return is mathematically given as
RR=(Rf+beta*(Rm-Rf)
Therefore
RR=(Rf+beta*(Rm-Rf)
Beta= (13-7)/8
Beta=0.75
In conclusion, the market price of a security
MR=DPs/RR
Where
Po=DPS/RR'
DPS=40*0.13
DPS=$5.23
and
RR=&+1.5*8
RR=19%
Hence
MR=$5.23/0.19
MR=27.368
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Answer:
The correct answer is C
Explanation:
Demand for business products is referred to as the derived demand, which means that the firm or business bought the products to be used while producing the products of customer.
And a small decrease or increase in the demand of the consumer could produce the larger change in the demand for the manufacturing equipment and facilities required to make the product for consumer.
So, the needs of the customer states that the demand for the business product is derived.
Answer:
Net operating income = $32,823
Explanation:
Calculate of Net Operating Income in Flexible Budget
Particulars Amount Amount
Revenue (6910*$39.30) $271,563
<u>Cost of goods sold</u>
Direct material (6910*$18.90) $130,599
Direct labor (6910*$3.10) $21421
Manufacturing overhead <u>$57647</u>
(6910*$1.7+45900)
Total Cost of goods sold <u>$209,667</u>
Gross profit $61,896
Selling and administrative expense <u>$29,073</u>
(6910*0.3+27000)
Net operating income <u>$32,823</u>
Answer:
the answer is option D)<u>Equal sharing of the bill ensures that people order a similar dollar amount of food</u>
Explanation:
The theory of consumer behavior states that "consumers allocate incomes among different goods and services to maximize their utility"
Consumer behavior revolves around three parameters their preferences, budget constraints, and options available.
The budget constraint will definitely influence the choice of what to buy within the options available to maximize utility. That means how the bill is shared among the three friends will ultimately affect how much they will chose to eat.
Secondly, The vegetarian will not be better off with equal sharing of the bill because the cost of his food according to the data provided is less.
We don not know for sure if the wine drinker drinks too much or whether he will want his other friends to foot the extra bill from the cost of his wine but we are certain that equal sharing of the bill ensures that people order a similar dollar amount of food.