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Elena L [17]
3 years ago
6

Suppose the demand for French bread rises.

Business
1 answer:
balu736 [363]3 years ago
4 0

Answer:

Rise in producer surplus for french bread

Rise in producer surplus in the market for flour

Explanation:

As demand for french bread rises it will raise its price, a rise in price of french bread will increase the producer surplus. the producer surplus for flour will also rise since its the main ingredient of bread a rise in demand for bread will increase the demand for flour as well raising its price hence producer surplus.

Note: A picture of the graph is attached

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Variable manufacturing overhead per unit = change in cost/change in <span>activity is what i think is the answer dont quote me on it :P</span>
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The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u
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Answer:

A) NPV= - $428,888.89 B) Company would break Even if g = 5.68%

Explanation:

Hi, we have to bring to present value all the inflows and outflows of cash, this is the formula to use and the math of it.

NPV=-Invesment+\frac{CashFlowYr1}{(return-growth)}

NPV=-1440000+\frac{91000}{(0.12-0.03)} = -428888.89

The question says that "at what constant growth rate would the company just break even..." and well, a NPV=0 is not precisely break even, actually, it means that the company is obtaining exactly what is asking for any investment, but let´s assume that the question was, what should the growth rate be for the company to accept this project?. So we have to solve the first equation for "g", that is:

g=\frac{(Invesment*return-CashFlowYr1)}{Invesment} =\frac{(1440000*0.12-91000)}{1440000} =0.0568

So the constant growth rate has to be at least 5.68% for the company to accept this project (NPV=0)

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6 0
4 years ago
Kyoko's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Kyoko's very tiny kitchen has barely e
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What flexibility assessment requires a partner?
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Answer:

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Change in net working capital = Increase in cash + Increase in accounts receivables + Increase in inventories - Increase in payable - Increase in accruals

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