Answer:
45: $10,000
46: $40,000
47: $20,000
Explanation:
Total fixed cost of Amy =
TFC = yearly fixed cost + 5% of $20,000
TFC = $9,000 + $1,000
TFC = $10,000
Total cost =
TC = Variable cost + total fixed cost
TC = $30,000 + $10,000
TC = $40,000
The total profit she accrued is the difference between the total cost and the money she'd borrowed from her parents.
$40,000 - $20,000 = $20,000
Therefore, the total profit of Amy is $20,000
Answer:
B. a price war
Explanation:
A price war -
It is the type of competition between the company selling the similar type of product , or rival companies who tries to reduce the price of the product strategizing in a way to apprehend the wider area of the market , is known as a price war .
Reduction of the price of any goods or commodity is considered to be one of the best method to increase its market share ,
because as soon as the price of any good decreases , the sales automatically increases , as the consumers are always in search of some discounts and good deals .
A price war can be short term , as well as long term .
Answer:
B. in the long run
C. when the price is a large portion of your income
E. when many substitutes are available
G. when there are many competing firms selling similar goods
Explanation:
Elasticity of demand is the degree of responsiveness of change in quantity demand of a product if there is a change in price of the product.
The demand for a product is somewhat inelastic in the short run, but in the long run, demand is more elastic.
The reason is that consumers need more time to respond and adjust to the use of certain products.
Also, when the price is a large portion of your income, price becomes more elastic. The reason is that, an increase in price leads to a decrease in quantity demand.
When many substitutes are available, an increase in price will cause consumers to shift their demand for the substitute.
When there are many competing firms selling similar goods demand for a product becomes more elastic
Answer: 1.54
Explanation:
Based on the information given in the question, the company’s target debt-equity ratio will be:
The total costs will be:
= $14.5 million + $775000
= $15.275 million
Since amount needed = amount raised × (1-fT)
Therefore, 15.275 × (1-f) = 14.5
15.275 - 15.275f = 14.5
f = floatation costs = 5.074%
Therefore, 5.074% × (1 + D/E) = 7.5% + (D/E) × 3.5%
Solving for debt-equity ratio, the value will be = 1.54
