Answer:
The firm will continue to produce in the short run.
Explanation:
Given the number of units produced by Acme Dynamite = 250 units.
The variable cost of producing the 250 units = $2000
The fixed cost = $500
The selling price = $25 per unit.
The new price after the fall in price = $10
Total revenue from the selling of 250 units = 250 × 10 = $2500
Since the revenue received is covering the variable cost and fixed cost. Thus, the firm will produce or continue to produce in the short run.
Answer:
Centralized Organization
Explanation:
Centralized organization can be defined as a hierarchy decision-making structure where all decisions and processes are handled strictly at the top or the executive level.
Answer:
Amortized to pension expense $21,600
Explanation:
Compututation of Indigo’s minimum amortization of the actuarial loss
Amortization
Projected benefit obligation($3,386,000)
Plan assets $3,617,000
Corridor percentage10%
Corridor amount $361,700
Accumulated loss $528,020
Excess loss subject to amortization $166,320
($361,700- $528,020)
Average remaining service 7.70
Amortized to pension expense $21,600
($166,320÷7.70)
Therefore the Minimum amortization of the actuarial loss will be $21,600
Answer:
The total cash flow of the firm
Explanation:
The M & M theory is a theory developed by Modgliani Miller about the capital structure of a company and its overall value .
The theory was first enacted under the assumption of a perfectly efficient market and when the effects of taxes and bankruptcy costs were not considered, However , he later developed another theory where tax and other costs are now considered to address the real world condition.
In summary , the basic lesson is that the value of a firm is dependent on the total cash floe of the firm.
