- Shut down, if the minimum possible average variable cost is $5
In the purely competitive market majority of the producers is price taker as there are many sellers of the same homogenous product. When in the situation of Marginal Cost (MC) of product at the current rate of production is equal to the market price. This shows that the firm isn’t in profit, it is selling at which they are producing. So, the Average Variable Cost AVC of product at this level indicates the shutdown of the firm production.
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Answer:
When there are insufficient funds in an account, and a bank decides to bounce a check, it charges the account holder an NSF fee. If the bank accepts the check, but it makes the account negative, the bank charges an overdraft (OD) fee. If the account stays negative, the bank may charge an extended overdraft
Explanation:
Answered By Huntermike976
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Answer:
= $52.78 per share
Explanation:
<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>
<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>
<em>Value of equity = Value of the entire firm - Value of debt </em>
We can work out the the value per share using the steps below:
<em>Step 1</em>
<em>Calculate the total value of the firm</em>
Value of firm = 27.50/(0.1-0.07)
= $916.66 million
<em>Step 2</em>
<em>Calculate the value of equity</em>
<em>Value of equity = Value of the entire firm - Value of debt</em>
= $916.66 million - $125.0 million
=791.666 million
<em>Step 3</em>
<em>Calculate the value per share</em>
Value per share = Value of equity/ units of common stock
=$791.666 million/15 million units
= $52.78 per share
Whats the whole question?
Answer:
$0.5 per box
Explanation:
From CVP analysis,
The break-even point = Fixed cost/contribution margin per unit
For Fiona
Break-even point =$120 boxes, fixed costs = $300
Contribution margin per init = selling price - variable costs
selling price =$5: variable costs, cookies cost $2 per box, and chocolate chips
therefore
120 = $300/ Contribution margin per unit
$120 = $300/ CM
CM = $300/$120
CM = $2.5
Contribution margin = selling price - variable costs
$2.5 = $5- cookies - chocolate chips
$2.5 =$5 - $2- chocolate chips
$2.5 -$3-chocolate
chocolate chips = $3-$2.5
=$0.5 per box
