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sveticcg [70]
3 years ago
14

In the context of the​ firm's supply​ curve, as the firm produces more of a​ good, the cost of producing each additional u

nit decreases . This implies that the marginal cost of producing a good â–¼ does not change decreases increases as it makes more of that good.
Business
1 answer:
Flura [38]3 years ago
5 0

Answer:

decrease

Explanation:

Marginal cost is a concept that explains the cost a company has to produce one more unit of good. This is a measure that is associated with the productivity of the inputs used in the production process. When a company increases production, marginal cost tends to decrease as inputs are better utilized. This is because the company specializes in production in order to streamline inputs and increase productivity.

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Justify your recommendation. From the BCG Matrix we can tell that Electrical appliances unit is a Cash Cow with high market share and stable growth.

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Explanation:

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2 years ago
Willie is the production manager of the sterile ophthalmic formulations division of Pharmogrep, a pharmaceutical manufacturing c
Hoochie [10]

Answer:

The answer is product departmentalization.

Explanation:

Pharmogrep most likely follow product departmentalization.

5 0
3 years ago
Which of the following should not be recorded in income and expenditure account?
kirill [66]

Answer:

C. honorarium paid to the secretary

Explanation:

6 0
3 years ago
Why is it important to understand money behavior is 80% and you have with your money and 20% is knowledge
musickatia [10]

Answer:

because it is always good to have money and understand and then save it and spend it wisely

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7 0
3 years ago
Use the following information to answer questions 4a.1-4a.5 Gerrell Corp. is comparing two different capital structures. Plan I
maxonik [38]

Answer:

Gerrel Corp.

EPS (Earnings per share) = Earnings after Tax/Number of outstanding shares

Plan I:

EBIT =                    $90,000

Interest =                 $4,750 ($95,000 x 5%)

Pre-Tax Income = $85,250

Income Tax Exp.      34,100 ($85,250 x 40%)

After Tax Income  $51,150

EPS = $51,150/18,000 = $2.84 per share

Plan II:

EBIT =                    $90,000

Interest =                 $9,500 ($190,000 x 5%)

Pre-Tax Income = $80,500

Income Tax Exp.     32,200 ($80,500 x 40%)

After Tax Income  $48,300

EPS = $48,300/14,000 = $3.45 per share

Plan III:

EBIT =                    $90,000

Pre-Tax Income = $90,000

Income Tax Exp.     36,000 ($90,000 x 40%)

After Tax Income $54,000

EPS = $54,000/22,000 = $2.45 per share

Explanation:

a) Data and Calculations:

Plan I = 18,000 shares + $95,000 debt

Plan II = 14,000 shares + $190,000 debt

Difference = 4,000 shares + $95,000 debt

Share price = $95,000/4,000 = $23.75

EBIT = $90,000

Interest Rate = 5%

Corporate Tax Rate = 40%

b) Capital Structure:

Plan I: (Equity and Debt)

Shares of 18,000 x $23.75 + $95,000 debt = $522,500 in total capital

Plan II: (Equity and Debt)

Shares of 14,000 x $23.75 + $190,000 debt = $522,500 in total capital

Plan III: (All-equity plan):

Shares of 22,000 x $23.75 = $522,500 in total capital

c) The Earnings per share is the measurement of the Net Income to stockholders divided by the number of outstanding shares.  It gives an idea about the profitability of the entity, especially with regard to the profit made for common stockholders.  The EPS is also one of the metrics used in the calculation of the P/E ratio to indicate whether a company's shares are undervalued or overvalued.

5 0
3 years ago
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