Answer: Depreciation is tax deductible
Explanation:
Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.
Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.
Answer:
d) All of the above
Explanation:
Here are the options to this question :
a) Geographic
b) Demographic
c) Psychographic
d) All of the above
e) None of the above
Geographic segmentation is the segmentation of people based on their locations
When Ashton Woods determines that homeowners are seeking locations convenient to good, local schools, he is segmenting by geography.
Demographic segmentation is the segmentation of people based on demographics such as age, income, gender, ethnicity.
When Ashton Woods profiles households based on the income they earn, he is doing demographic segmentation
Psychographic segmentation is the segmentation of a group of people into groups based on certain psychological characteristics
When Ashton Woods determines that homeowners would want like a beautiful upscale home, without the cost of maintaining a large yard. He is segmenting based on Psychography
1 5/7 would be the quotient
Answer:
The correct answer is E.
Explanation:
Giving the following information:
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change.
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 544,500/ [(100-45)/100]
Break-even point (dollars)= $990,000
