Answer:
Continue operating; $699
Explanation:
The equilibrium price is $10.
MR = MC at 233 units of output.
At this output level, ATC is $12, and AVC is $9.
The AFC or average fixed cost
= ATC - AVC
= $12 - $9
= $3
The total fixed cost
= 
= 
= $699
The equilibrium price is able to cover the average variable cost so the firm should continue production in the short run.
Answer:
The range of transfer price is $42 to $53
Explanation:
The rationale behind the recommended transfer price is that Division B cannot sell below the variable cost of $42. Division B cannot also sell above the prevailing market price of $53. The negotiation between the two divisions ranges between $42 and $53.
Character srlec is retail er
Answer:
6.997%
Explanation:
To find the answer, we use the Yield to Maturity (YTM) for a Zero Coupon Bond:
YTM = [(F/PV)^1/n] - 1
Where:
F: Face/Par value (the question is telling us that the par value of a 3-year bond is $816.367)
PV: Present Value (which is the same as the price: $1,000)
n: number of periods (in this case 3 years because the coupon is annual)
Now, we plug the amounts into the formula:
YTM = [($1,000/$816.37)^1/3]-1
YTM = 6.997%
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, a common mistake made in the companies that are not well managed, is that those organizations focuses in the profit orientation and also most of the time those companies have <em>marketing myopia</em>, a concept that explains that they focuses on the product and not on the client and their needs. Therefore that it is understandable that Classic Creatives has not yet adopted a customer orientation, that focuses on satisfying the twenty percent of the customers that give the company the eighty percent of the profits, according to the<em> 80/20 rule of the Pareto Principle</em>.
