Answer: B. No, if it were a Cobb-Douglas production function, the income shares would be constant over time.
Explanation:
The Cobb-Douglas production function is usually used to show the relationship between capital and labor( can be used for other variables) and how much output they can produce at varying levels.
The thing about the Cobb-Douglas function however, is that it assumes a constant rate of income shares overtime. This country's income on the other hand, sees its income shares fluctuating overtime so the Cobb-Douglas function is not a good representation for them.
Cost-volume-profit analysis can be extended to determine the effect on profit of other changes, such as changes in Income Tax rates.
<h3>What is
Cost-volume-profit analysis?</h3>
An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.
Companies can utilize CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).
CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.
where:
FC=Fixed costs
CM=Contribution margin=Sales−Variable Costs
Simply add a goal profit per unit to the fixed-cost part of the calculation and use it to calculate a company's target sales volume.
To know more about CVP Analysis refer to: brainly.com/question/15001199
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Answer:
Nonprofit companies as the name implies are those that work through donations made by certain entities. If it is known that a non-profit company does not know how to manage its resources, then these entities or individuals who want to make donations for the cause, will not do so because the idea is that the purpose of the association is fulfilled.
For example if a company donates medical equipment to a hospital and instead of medical equipment they buy a car then we would be saying that they would not be taking advantage of resources
Answer:
Ending balance of assets is $ 857,100
Explanation:
Computation of total assets of Kirk Corporation
Opening Assets $ 851,000
Purchase of equipment $ 6,100
Purchase of supplies for cash $ 0
Sale of land at cost $ 0
Agreement for storage space <u>$ 0</u>
Ending balance Assets $ 857,100
Purchase of equipment on credit increases assets
Purchase of supplies for cash is neutral. Supplies ( considered as included in inventory) is paid in cash asset increases and decreases
Sale of land at cost is also neutral for asset purposes
Agreement to rent storage space is not an executed transaction
Answer and Explanation:
The computation of firm’s market value capital structure and the Weighted average cost of capital is shown with the help of spreadsheet. Kindly find it below
The formulas that we use in spreadsheet is shown below:-
WACC = Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
As per question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
The market rate of return - risk free rate of return = market risk premium
