All categories

3 years ago

Marginal cost is equal to the options:

Business

1 answer:

Nadusha1986 [10]3 years ago

7 0

Answer:

B) change in average total costs divided by the change in output.

Explanation:

Marginal cost is the extra cost incurred for the production of an additional unit of output after breakeven. At the breakeven point, fixed costs have been absorbed. Any additional production will incur variable costs . Marginal costs will, therefore, comprise direct labor, direct material, and a small proportion of fixed costs, such as administration and selling costs.

The calculate marginal cost, divide the total change in costs by the change in the product output. i.e.

Marginal costs = change in cost / change in output.

Marginal cost is compared with marginal revenue when deciding whether to increase production or not.

You might be interested in

Best Ever Toys just paid its annual dividend of $1.78 per share. The required return is 10.6 percent and the dividend growth rat

lianna [129]

Answer: $20.44

Explanation:

From the question given, we are informed that Best Ever Toys just paid its annual dividend of $1.78 per share and that the required return is 10.6% and the dividend growth rate is 1.23%, then the expected value of this stock five years from now will be:

= [$1.78 × (1 + 1.23%)^6] / (10.6% - 1.23%)

= (1.78 × 1.0123^6)/(10.6% - 1.23%)

= 20.44

The expected value of the stock is $20.44

5 0

2 years ago

Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie company’s c

11111nata11111 [884]

Answer: 2 years

Explanation:

The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.

In the above question, the payback period is solved as follows:

Labour cost decreases by 10% for each unit.

Therefore,

= $10 × 10%

= $10 × 0.1

= $1 per unit.

In order to recover $2000, the business needs to sell the following;

= 2000/1

= 2000units.

If Eric sells 1000 units per year of Emu, it will take:

2000/1000= 2years

In conclusion, the payback period of the investment is 2 years.

8 0

2 years ago

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

CaHeK987 [17]

Answer:

The current price of the bond would be € 898.87

Explanation:

Hi, we need to bring to present value the coupon payments and also the face value of the coupon in order to find the price of this bond, that can be done by using the following formula.

$Price=\frac{Coupon((1+Yield)^{n}-1) }{Yield(1+Yield)^{n} } +\frac{FaceValue}{(1+Yield)^{n} }$

Where:

Coupon = 1,000*0.078=78

Yield = 0.089 (or 8.9%)

Face Value= 1,000

n = 20 coupon payments

So, everything should look like this.

$Price=\frac{78((1+0.089)^{20}-1) }{0.089(1+0.089)^{20} } +\frac{1,000}{(1+0.089)^{20} }$

$Price=717.13+181.74=898.87$

Therefore, the price of this bond is € 898.87

Best of luck.

7 0

2 years ago

What does absorb water mean?

Kobotan [32]

Answer:

Absorb water means to suck up or drink in.

3 0

2 years ago

1. You are a small employer wishing to establish a benefits program for your employees. What things should you consider to ensur

Ira Lisetskai [31]

The program is considered to be success when it is implemented properly.

Employee benefit programs include health and life insurance, preventative doctor care, and the free health checkups, all of which aid employees in maintaining excellent health and fostering wellbeing. These benefits increase employee satisfaction with your company.

Employers have a significant and costly challenge in managing employee benefits. While most companies are required to give mandated benefits such as Social Security payments, worker's compensation insurance, and unemployment insurance, the majority of other benefits are optional and selected by the company.

Therefore, the answer is proper implementation.

To know more about benefit program click here:

brainly.com/question/12143528

#SPJ4

8 0

1 year ago