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Norma-Jean [14]
3 years ago
5

The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase

the value of the products by even a small amount requires a significant financial investment.
Business
1 answer:
Vinvika [58]3 years ago
5 0

Answer:

diminishing returns

Explanation:

I'll provide you with a situation as an example.

Let's say that you are running a successful ice cream company. Typically, ice creams are made with dairy. This made a certain percentage of population couldn't consume it since they are lactose intolerant. (Basically eating dairy will give them diarrhea ).

There are not many people who have this condition. Let's say that you want to increase the value of your product and use the materials that makes your product become consumable to this specific population while maintaining the original taste.

This would resulted in a small amount  increase in customers base , but the investment that you need to make in order to make it happen will be substantial. You basically have to invest in researches to find the perfect ingredients, invest in additional marketing expense to educate the customers on the new product, change your current production flow, etc.

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Please think of one example of a product that you use on a regular basis for which some of the cost of production or consumption
Lelu [443]

Answer and explanation:

Externalized costs are costs that the society pays that are generated by producers and the consumers of the product. The common example is the use of petrol. If I own a car and I don't like riding bicyle for smaller distances, this means the Carbon dioxie emission caused due to me have to be born by the society. This means that the net effect would be a loss to society caused by the usage of products that are injurious to our ecosystem.

UK has targeted to achieve zero Carbon dioxide emission by 2050, which shows their commitment to social responsibility and we keep dumping things in the oceans because nobody acknowlegdes the damage caused by using plastic made products and also not recycling it. After plastic into the oceans the marine life suffers. The Carbon Dioxide emission is one of the main reasons why the glaciers are melting and many animals are dying annually. We unaware with our responsibilities to our society and love profits no matter if someone dies or get harmed by the operations of the company or using products that have greater externalized costs.

7 0
2 years ago
Read 2 more answers
If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is
guajiro [1.7K]

If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is  Progressive tax.

<h3>What is meant by progressive taxes?</h3>

The average tax burden rises with income under a progressive tax. Low- and middle-income taxpayers bear a disproportionately tiny amount of the tax burden, compared to high-income families. A tax system that raises rates as taxable income rises is known as a progressive tax. Taxes on investment income, interest income, rental income, estates, and tax credits are a few examples of progressive taxes.

Based on the amount of tax you must pay relative to your income, taxes can be classified as regressive, proportional, or progressive. As your income declines, regressive taxes force you to pay a bigger proportion of your individual income in taxes. Tax reductions enhance people' discretionary income while reducing the government's revenue. Tax reductions typically refer to decreases in the percentage of income, commodities, and services subject to tax. Tax reductions serve as an illustration of an expansionary fiscal strategy since they give consumers greater discretionary income.

So, If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is Progressive tax.

Learn more about Progressive tax here

brainly.com/question/1022789

#SPJ4

5 0
2 years ago
Boxer Company owned 16,000 shares of King Company that were purchased in 2016 for $440,000. On May 1, 2018, Boxer declared a pro
Serjik [45]

Answer:

By 110,000 the retained earnings reduced by the property dividend.

Explanation:

Retained Earnings: The retained earnings is that earnings which is left after all payments relating to the business expenses, shareholder dividend. The earnings which is to be retained so that it can come in use in near future.

For retained earning calculation, the stock market value is recorded when the date is declared not on distribution date.

So, the calculation is computed below:

As the 50,000 shares is given for every 10 shares. So, first we have to compute for 1 share which comes by dividing shares to number of shares i.e.  50,000 shares ÷ 10 shares = 5,000 for 1 share.

Now, multiply by market value which comes = 5,000 × $22 = $110,000.

So, by 110,000 the retained earnings reduced by the property dividend.

4 0
3 years ago
Bargeron corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt.
dalvyx [7]

a.

WACC is calculated as –

WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)

WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))

WACC = 10.46%

b. After tax cost of debt is calculated as –

After tax cost of debt = (1- tax rate) X cost of debt pre-tax

After tax cost of debt = ((1- 40%)*8.1%))

After tax cost of debt = 4.86%

6 0
3 years ago
Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected info
ddd [48]

Answer: Please refer to Explanation,

Explanation:

1. The Profitability Index is a ratio analysis instrument that measures the amount of payoff per Investment. It is calculated with the following simple formula,

= Net Present Value / Investment Required.

Project A

= 473,750/ 860,000

= 0.55

Project B

= 354,930/ 675,000

= 0.53

Project C

= 170,895 / 560,000

= 0.31

Project D

= 169,190 / 760,000

= 0.22

2. - According to Net Present Value

a. Project A

b. Project B

c. Project C

d. Project D

- According to Project Profitability Index

a. Project A

b. Project B

c. Project C

d. Project D

- According to Internal Rate of Return

a. Project A

b. Project D

c. Project B

d. Project C.

4 0
2 years ago
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