Answer:
a. Economies; falling
Explanation:
Economies of scale: It is referred to as the reduction in cost due to an increase in the scale of production. Due to efficient production, the company is able to gain a cost advantage. It also helps the consumer to enjoy lowering the price of goods in the market, which lead to an increase in demand for goods.
There are two types of economies of scale:
Internal economies of scale- It includes technical and efficient production, good management, efficient procurement, etc.
External economies of scale- It includes government policies, support and taxation policy.
Therefore in the given case, the firm is likely to exhibit Economies of scale and falling average total cost.
Answer:
obligation ratio: 0.3081 = 30.81%
Explanation:
Total oblication will include all the payment:
property taxes: 2,100 / 12 = 175
insurance: 600 / 12 = 50
car monthly payment: 450
mortage monthly payment: 557.35
Total obligation: 1,232.35
<u>mortgage monthly payment:</u>
PV 110,000
time 360 (30 years x 12 months per year)
rate 0.00375 (0.045 divide into 12 months to get the monthly rate)
C 557.354
<u>total obligation ratio:</u>
1,32.35 / 4,000 = 0.3081
Allocation of joint costs in proportion to the value of the output of the sales which were produced in the process during at the split-off point is a preferred approach.
<h3>What are joint costs?</h3>
Joint costs involve the benefit of more than one product, and the separation of the costs of such products is impossible as the benefits related thereto are also joint.
One of the best examples of joint costs is in a condition when a cattle-owner feeds both the flock of sheep and cattle of cows at the same time. One cannot differentiate between the separate costs allocated.
Hence, it may be said that value basis is the most appropriate method for the purpose of allocation of joint costs being incurred in the proportion as it may be.
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Answer:
$3.72
Explanation:
in order to determine the price of the stock we use the dividend discount model:
P₀ = Div₁ / (Re - g)
- P₀ = $90
- Div₁ = ?
- Re = 9%
- g = 9% / 2 = 4.5%
Div₁ = P₀ x (Re - g)
Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05
now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72
According to the information in the Graph Veronique made a better decision than Lily because the final cost of her purchase is lower including finance charges (option B)
<h3>What is a finance charge?</h3>
A finance charge is an economic term that refers to additional charges made by finance companies (such as banks) to a transaction we make, such as a purchase.
In the case of Veronique and Lilly, they both bought the same suitcase with different prices. However, the better financial decision was Veronique's because she paid less ($25) for the same bag including finance charges.
While Lilly, despite having fewer fees, will have to pay $10 more than Veronique.
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