Answer:
B) dividing the change in total cost by the change in output
Explanation:
Marginal cost(MC) is the cost incurred as a result of producing additional units of goods and services. It is calculated by dividing a change in total cost by a change in output.
That is,
Marginal cost(MC)= change in total cost(TC)/ change in output
Total cost(TC): This is the addition of fixed and variable cost in production.
Total cost(TC)= fixed cost (FC)+variable cost (VC)
Fixed cost (FC) are cost that doesn't change during the production process such as buildings, machineries and furniture.
Variable cost (VC) are cost that changes or are used up during production process such as raw materials.
Suppose that you deposit $4,500 in your bank and the required reserve ratio is 18 percent. The maximum loan your bank can make as a direct result of your deposit is 3690.
<h3>
What exactly is a bank loan and the required reserve ratio?</h3>
- A loan is a quantity of money that one or more people or businesses obtain from banks or other financial organizations in order to handle their finances in connection with anticipated or unforeseen circumstances.
- By doing this, the borrower creates a debt that must be repaid with interest within a predetermined time frame.
- The percentage of deposits that authorities mandate a bank maintain in reserves and refrain from lending out is known as the required reserve ratio.
- If the required reserve ratio is 1 to 10, a bank can only lend out $0.90 of every dollar it has on deposit, but it must retain $0.10 in reserves.
Hence, The maximum loan your bank can make as a direct result of your deposit is 3690.
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Answer:
$227,500
Explanation:
The computation of the total amount of cash paid is shown below:
Cash paid for insurance premium = Prepaid Insurance at end of the year + Prepaid Insurance recognized - Prepaid Insurance at the beginning of the year
= $61,250 + $218,750 - $52,500
= $227,500
We simply applied the above formula so that the correct amount of cash paid could come with respect to the insurance premium
Using simple interest, she will have $410 at the end of six months.
Principle = $400
Rate = 5%
Time equals 6 months, or 0.5 years.
Simple interest is equal to PRT/100.
S.I. = 400*5*(1/2)/100
S.I. = 10
Consequently, $400 plus $10 equals $410.
<h3>What is simple interest?</h3>
To calculate the amount of interest that will be charged on a loan, use the quick and easy formula known as simple interest. For the purpose of calculating simple interest, the daily interest rate, the principal, and the number of days between payments are multiplied.
A loan's principal or the first deposit into a savings account serves as the basis for simple interest. Because simple interest doesn't compound, a creditor would only pay interest on the principal sum, and a borrower will never have to pay interest on the interest that has already accrued.
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Answer:
32.13%
Explanation:
The computation of the break-even corporate tax is shown below:
As we know that
Municipal bond return = preferred stock return before tax × [1 - (1 - dividend exclusion) × Break even corporate tax]
7.5 = 8.30 × [1 - ( 1 - 0.70) × Break even corporate tax
]
7.5 ÷ 8.30 = 1 - 0.30 × Break even corporate tax
0.9036 = 1 - 0.30 × Break even corporate tax
0.30 × Break even corporate tax = 1 - 0.9036
So, Break even corporate tax is
= 0.0964 ÷ 0.30
= 32.13%
Basically we applied the above formula
