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Rufina [12.5K]
2 years ago
14

Higher fixed costs are associated with:_____.

Business
1 answer:
VladimirAG [237]2 years ago
6 0

Answer:

a. 1 and 3.

Explanation:

Given that the operating leverage of a business firm is a sum of its fixed cost and variable cost about the way the firm's cost of business is attributed.

In this case, when a business firm has a high fixed cost, it normally requires a high number of sales to earn more profits. This is termed as "higher operating leverage." This thereby leads such business firms to have "increased risk."

Hence, It is practically correct that in business operation that when a business firm has Higher fixed costs it is associated with "higher operating leverage and increased risk"

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___________ is a process used to test consumer reactions about a product among potential users.
aleksandrvk [35]

Answer:

the correct answer is D

Explanation:

Test marketing is a process used to test consumer reactions about a product among potential users.

good luck

5 0
3 years ago
Read 2 more answers
g Your financial advisor offers you two different investment options. Plan A offers a $17,000 annual payment, in perpetuity. Pla
motikmotik

Answer:

4.76%

Explanation:

The requirement in this question is determining the discount rate which gives the same present value in both cases since discount rates discount future cash flows to present value terms.

PV of a pertuity=annual cash flow/discount rate

PV of a pertuity=$17,000/r

PV of ordinary annuity=annual cash flow*(1-(1+r)^-n/r

PV of ordinary annuity=$30,000*(1-(1+r)^-18/r

$17,000/r=$30,000*(1-(1+r)^-18/r

multiply boths side by r

17000=30,000*(1-(1+r)^-18

divide both sides by 30000

17000/30000=1-(1+r)^-18

0.566666667=1-(1+r)^-18

by rearraging the equation we have the below

(1+r)^-18=1-0.566666667

(1+r)^-18=0.433333333

divide indices on both sides by -18

1+r=(0.433333333)^(1/-18)

1+r=1.047554315

r=1.047554315-1

r=4.76%

5 0
2 years ago
Normand Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the
QveST [7]

Answer:

total equivalent units for materials = 6,310

Explanation:

700 units in beginning work in process:

  • materials: 70% complete, $8,700, completed 490 equivalent units, not completed 210 units
  • conversion: 10% complete, $3,700

units started in to production 6,400

units transferred out 5,600

ending work in process 1,500

  • materials: 80% complete, completed 1,200 equivalent units for materials
  • conversion: 25% complete

materials added $92,200

conversion costs added $269,600

equivalent units for materials:

  • beginning WIP equivalent units to be completed = 210
  • units started and completed = 5,600 - 700 = 4,900
  • ending WIP = 1,200 equivalent units
  • total equivalent units for materials = 6,310
4 0
3 years ago
Jon enjoys fishing (which costs $20) and golf (which costs $30). last month, jon fished four times and golfed twice. the last fi
Gennadij [26K]
He did maximize the utility <span>according to the utility maximization rule</span>.

6 0
3 years ago
The economy has an annual inflation rate of 3.5%. it will take approximately how many years for the price level to double?
EleoNora [17]
To find the answer you will want to follow the rule of 70. The rule of 70 allows you to find the number of years it takes a variable to double.

In this situation, you would divide 70 by 3.5% (variable) giving you 20 years.

It would take approx. 20 years for the price level to double. 
8 0
3 years ago
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