Write a reaction paper of no less than 250 words to the Jenkins and Grossman arguments you read during this lesson.

Which of the following is not an example of a cost that varies in total as the number of units produced changes?

Leto [7]

Answer:

b) straight line depreciation on factory equipment

Explanation:

The other three cost components are directly related to the level of production.

Wages of the assembly works increases with the level of production.

Direct materials also moves with the level of production

Electricity consumption is also linked to the level of production.

The depreciation on factory equipment on straight line method is not dependent on level of production. Even if there is no production the depreciation has to be charged

6 0

3 years ago

Read 2 more answers

When the price of gasoline rose to $4 per gallon in the summer of 2008, many people were outraged at how gas companies were "pri

rjkz [21]

Answer:

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Explanation:

6 0

3 years ago

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as:___

horsena [70]

The difference between the price an issuer receives and the offering price at which shares are sold to investors is known as The gross spreads.

Gross spread is the distinction among the underwriting fee obtained by the issuing business enterprise and the actual rate offered to the making an investment public. In different words, the gross spread is the monetary institution's reduce or benefit from the IPO listing.

The gross proceeds suggest the overall sum of money the syndicate increases from the primary traders. add the underpricing to the gross proceeds to obtain the marketplace price presented.

An underwriting unfold is the distinction among the greenback amount that underwriters, which includes investment banks, pay an issuing for its securities and the greenback quantity that underwriters obtain from promoting the securities in a public imparting. In one of the maximum common definitions, the spread is the space among the bid and the ask charges of a protection or asset, like a inventory, bond, or commodity.

Learn more about gross spreads here:-brainly.com/question/16259338

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4 0

2 years ago

Looking forward to next year, if Digby’s current cash balance is $19,743 (000) and cash flows from operations next period are un

Ainat [17]

Answer: Retires $20,000 (000) in long-term

Explanation:

The action that will expose Digby to the most risk of needing a loan is the one that will involve using the most cash that the firm has.

By retiring Long term loans of $20,000 (000), Digby runs the risk of needing an emergency loan in the future because they did not take enough action to finance the company vs the amount in the cash balance that will be spent if they do indeed retire long term loans of that amount.

They have $19,743 (000) and yet only issued 100 (000) shares and $200 (000) of long-term debt. Should they payoff $20,000 (000), their cash flow will take a drastic hit which increases the likelihood of needing an emergency loan.

3 0

3 years ago

Sydney wins a prize. She has a choice of receiving a payment of $160,000 immediately or of receiving a deferred perpetuity with

Mamont248 [21]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She has a choice of receiving a payment of $160,000 immediately or of receiving deferred perpetuity with $10,000 annual payments, the first payment occurring in exactly four years.

A) i= 5%

First, we need to determine the value of the perpetuity four years from now.

Perpetuity= 10,000/0.05= 200,000

Now, we can calculate the present value:

PV= 200,000/(1.05^4)= $164,540.50

B) i= 6%

Perpetuity= 10,000/0.06= $166,666.67

PV= $166,666.67/1.06^4= $132,015.61

C) She should consider her necessities of cash and the value of the products she can purchase now.

5 0

3 years ago