In order to find current return on equity we need to find equity , In order to find equity we may use the below logic.
Since 39% of the assets are financed by Debt, we can conclude that the remaining 61% of total assets are financed by equity. Thus, of $410000, 61% constitutes Equity, Which is $250100.
In order the find Return on Equity we may used the below formula:
Return on Equity=
Return on Equity=
*100
Return on equity= 11.30%
In cash assets are reduced to $252500, and the firm expects to keep the same capital structure of 39:61, Amount of Debt will be $98475 and Equity will be $154025
Thus New Return on Equity will Be= $28250/$154025*100
Return on Equity=18.34%
Thus return on equity increases by 7% (Approximately).
Assuming no economies of scale and identical costs, if the firms in a purely competitive industry were replaced by a profit-maximizing monopolist, the likely result would be <u>an Increase in price and reduced output</u>.
A key characteristic of a monopolist company is that it is a profit maximizer. A monopolistic market has no opposition, meaning the monopolist controls the rate and quantity demanded. the level of output that maximizes a monopoly's earnings is while the marginal cost equals the marginal sales.
The profit-maximizing monopolist for the monopoly will be to produce at the amount wherein marginal sales is equal to marginal fee: that is, MR = MC. If the monopoly produces a decreased amount, then MR > MC at those ranges of output, and the firm could make better income by way of expanding output.
The profit-maximizing output stage is represented as the only at which total sales is the height of C and total price is the peak of B; the maximal earnings is measured as the period of the section CB. This output level is also the only at which the whole earnings curve is at its maximum.
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Answer:
C) $21,080
Explanation:
The computation of the net operating income is given below:
Particulars Per unit Total
Sales $114 $1,128,600
Less: Variable expenses:
Raw material cost (6 pounds for $4) $24 $237,600
Direct labor cost (2.4 hours for $24) $58 $570,240
Manufacturing overheads (2.4 hours for $9) $22 $213,840
Variable selling and admin expenses $2 $15,840
Contribution margin $9 $91,080
Less: Fixed Selling and admin exp $70,000
Net operating income $21,080
Answer:
$7.15
Explanation:
Calculation for Other The cost of wages and salaries and other overhead that would be charged to each bouquet made is:
Wages and salaries charged to each bouquet produced = (60%*$180,000)+(50%*$70,000)/20,000 bouquet
Wages and salaries charged to each bouquet produced = $108,000+$35,000/20,000 bouquet
Wages and salaries charged to each bouquet produced = $143,000/20,000 bouquet
Wages and salaries charged to each bouquet produced = $7.15
Therefore The cost of wages and salaries and other overhead that would be charged to each bouquet made is:$7.15
Answer:
C. People accept it in exchange for goods or services.
Explanation:
Money is a type of thing that is valuable because we know people accept it. Money can be used to purchase goods, and many other things. According to Subjecto.com, " Money can be used to purchase goods and services even though it is no longer backed by gold. Security measures prevent counterfeiting but do not add value." Seeing this, the only answer reasonable is C.
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