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3 years ago

In the short run:

Business

1 answer:

prisoha [69]3 years ago

8 0

Answer:

C)some inputs are fixed and some inputs are variable.

Explanation:

Usually, the fixed cost are usually fixed for a some levels of activity. However, as the level of activities increases, the fixed cost may also increase.

Variable cost on the other hand changes directly as the level of activities (say number of units produced) changes.

As such, in the short run, some inputs are fixed and some inputs are variable.

Option C is right.

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The average-marginal rule states: a. when the marginal magnitude is rising, the average magnitude must also be rising. b. when t

lozanna [386]

Answer:

The correct answer is letter "C": when the marginal magnitude is below the average magnitude, the average magnitude falls.

Explanation:

The average-marginal value is an Arithmetic rule implemented in Economics that states that when the marginal value is above the average value, the average value tends to rise, In case the marginal value is below the average value, the average value tends to fall. The average value remains the same when it is equal to the marginal value.

5 0

3 years ago

Several years ago Brant, Inc., sold $900,000 in bonds to the public. Annual cash interest of 9 percent ($81,000) was to be paid

gtnhenbr [62]

Answer:

The Journal entries are as follows:

(1) On December 31, 2016

Bonds payable A/c Dr. $154,040

Interest income A/c Dr. $14,070

Loss on retirement of debt A/c Dr. $49,000

To investment in bonds $198,870

To Interest expense $18,240

(To record consolidation entry)

(2) On December 31, 2018

Bonds payable A/c Dr. $158,884

Interest income A/c Dr. $13,761

Investment in Zack A/c Dr. $40,266

To investment in bonds $194,152

To Interest expense $18,759

(To record consolidation entry)

Workings:

Interest expense for December 31, 2016:

Book value = 20% of Bond liability (as per equity method)

= 0.2 × $760,000

= $152,000

Interest expense = 12% of Book value

= 0.12 × $152,000

= $18,240

Interest expense for December 31, 2016:

= 12% of Book value

= 0.12 × $156,325

= $18,759

7 0

3 years ago

Nutech Corp. is expecting the following cash flows—$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years.

Alja [10]

Answer:

$429,560

Explanation:

Present value will be calculated through the PV formula,

$PV = \frac{C1}{1+r} + \frac{C2}{(1+r)^{2} } + \frac{C3}{(1+r)^{3}} + \frac{C4}{(1+r)^{4}} + \frac{C5}{(1+r)^{5}}$

r = 15%

C1 = $79,000 ,C2 = $112,000 ,C3 = $164,000 ,C4 = $84,000 ,C5 = $242,000

Substituting the values in the formula,

$PV = \frac{79,000}{1.15} + \frac{112,000}{(1.15)^{2} } + \frac{164,000}{(1.15)^{3}} + \frac{84,000}{(1.15)^{4}} + \frac{242,000}{(1.15)^{5}}$

PV = 68,695.66 + 84,688 + 107,838 + 48,030.2 + 120,338.14

PV = $429,560

The present value of the cash flows of Nutech Corp. over the next five years is $429,560.

8 0

3 years ago

(a) which are higher, federal income taxes or state and local income taxes? (b) how much are total income taxes per capita?

victus00 [196]

What.......................

6 0

3 years ago

Select cost information for Klondike Corporation is as follows:

Bingel [31]

Answer:

D. Direct materials is a variable cost and rent expense is a fixed cost.

Explanation:

As clearly seen from the data the direct material cost is varying but the rent cost is fixed cost.

6 0

3 years ago