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3 years ago

Choose the best answer:

Business

1 answer:

Juli2301 [7.4K]3 years ago

3 0

Answer:

Option B is correct.

Explanation:

Option A is incorrect because the expected return must be greater than the marginal cost of the capital which means that the Net Present Value must be positive.

Option B is correct because the increase in cost of debt or capital would increase the weighted average cost of capital. This is because weighted average cost of capital is directly proportional to cost of capital sources.

Option C is incorrect because its not the cost of one of the capital sources, actually it is the weighted average cost of capital which when starts increasing at a point due to increase in the level of financing is known as breaking point.

So the only statement that is correct is option B.

Kindly don't forget to rate the answer. Thanks

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The total profit Marjorie's mugs are = $2200

<h3>What is Variable cost?</h3>

Variable costs are expenses that alter as the volume of a good or service a company produces fluctuates. Marginal costs multiplied by the number of units produced make up variable costs. They can be regarded as typical expenses as well. Total cost is divided into two parts: fixed costs and variable costs.

<h3>What is fixed cost?</h3>

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<h3>According to the given information:</h3>

Total mugs sold = 300

mugs sold at = 20

variable cost = 7

total fixed cost = 1700

find the profit:

profit = (300*(20-7) - 1,700)

= $2,200

The total profit Marjorie's mugs are = 2200

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