1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tatyana61 [14]
2 years ago
5

1.Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically

. What impact, if any, will this have on the following: a. the firm's AFC (average fixed cost);
Business
1 answer:
jolli1 [7]2 years ago
5 0
In this situation, the Average fixed cost wll be INCREASED.

AFC (average fixed cost) is calculated by adding up all total fixed cost within a certain period and divide it with the total years. If a business experienced an increased in any way to its fixed cost, the average will automatically increased.
You might be interested in
"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o
Kaylis [27]

Answer:

4.5%

Explanation:

Stock R (Beta) = 1.5

Stock S  (Beta) = 0.75

Expected rate of return on an average stock (Rm)= 10%

Risk free rate (Rf) = 4%

Required Return (Re) = Rf +(Rm-Rf) B

Required Return = 0.04 + (0.10-0.04) B

Required Return = 0.04 + 0.06B

Stock R = 0.04 + (0.06 * 1.50)

Stock R = 0.04 + 0.09

Stock R = 0.13

Stock R = 13%

Stock S = 0.04 + (0.06 * 0.75)

Stock S = 0.04 + 0.045

Stock S = 0.085

Stock S = 8.5%

Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.

= 13% - 8.5%

= 4.5%

7 0
2 years ago
Based on the readings: match the following business example with its associated product cost term A businessowner pays for rent
sladkih [1.3K]

Answer:

A business owner pays for rent and equipment at their office ⇒ FIXED COSTs since the amount of rent paid should be the same year after year

An airline considers the costs of serving food and beverages to its passengers ⇒ VARIABLE COSTS since the cost of serving food will increase as the number of passengers increase, or will decrease if the number of passengers decrease

A company considers the costs it pays to its employees ⇒ VARIABLE COSTS since the number of employee can vary and the number of hours worked can also vary

A clothing manufacturer buys new machines for its factory ⇒ FIXED COSTS since the machines are depreciated at a predetermined rate that doesn't depend on the factory's output

8 0
2 years ago
The Big Five Factor categories are referred to as _____. CLEAN OCEAN BFIVE BFPTC
pshichka [43]

Answer:

answer is normal

Explanation:

please mark me as brainlier

7 0
2 years ago
Pursuant to plan of reorganization adopted in the curren year, newman corporation exchanged property with an adjusted basis of 8
Alenkinab [10]

Answer:

Explanation:

Victor's recognized gain equals to zero, because this exchange qualifies under Sec. 368 as a tax-free reorganization.

4 0
2 years ago
Chabot Company had the following results last year: net operating income, $2,160; turnover, 5; and return on investment 18%. Cha
Irina18 [472]
Should be b! hope this helps
5 0
2 years ago
Other questions:
  • Kevin has just finished paying off his loan. He was assessed a service charge of $422. He paid off the principal and the interes
    13·2 answers
  • For biomedical engineers, what degree is generally required to teach in a university setting?
    13·2 answers
  • Monique has a balance of $5440 on a credit card with an apr of 17.7%. paying off her balance in which of these lengths of time w
    7·2 answers
  • In a simplified banking system where deposits are the only form of money and the reserve ratio is 0.2, the deposit multiplier wo
    15·1 answer
  • Which form of print presentation is a paid medium?
    5·1 answer
  • In _______________________ arbitration, the arbitrator is not constrained to choose either the management or union's offer(s); r
    15·1 answer
  • The first group of customers to enter the market for a new product are called: a. the late majority. b. laggards. c. passive sho
    12·1 answer
  • The _____ of a police officer would state that the purpose of the job is to protect citizens, patrol highways, provide safe and
    11·1 answer
  • Jim sells college textbooks. To date Jim has sold $141,002 worth of textbooks. His sales quota is $194.159. Tomorrow he expects
    12·1 answer
  • Partial-Year Depreciation Sandblasting equipment acquired at a cost of $42,000 has an estimated residual value of $6,000 and an
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!