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IrinaK [193]
3 years ago
11

Alternative A has a rate of return of 14% and Alternative B has a rate of return of 17%. If the investment required in B is larg

er than that required for A, the rate of return on the increment of investment between A and B is
Business
1 answer:
charle [14.2K]3 years ago
8 0

Answer:

The answer is "larger than 17%".

Explanation:

Assume the sum of investment as B is more than A:

In part A:  

                                                                        A                    B           Increment

Purchase(assumed)                                          100              150                   50  

Departure Rate                                                   14%              17%                

Return                                                                 14                25.5               11.5      

The rate of return increases( \frac{11.5}{50} \times 100)                                                       23      

In part B:  

                                                                         A                    B           Increment

Purchase(assumed)                                          100              120                   20  

Departure Rate                                                  14%              17%                

Return                                                                 14                20.4               6.4      

The rate of return increases( \frac{6.4}{20} \times 100)                                                        32      

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An airport shuttle company forecasts the number of hours its drivers will work based on the distance to be driven (in miles) and
siniylev [52]

Answer:

5.5 Hours

Explanation:

The main difference among both the drivers is the number of jobs and the difference of working hours can only be determined by adding number of jobs.  Sofia has two more jobs compared to victor. Following is the method to calculate the working hours:

4+0.75(2)=5.5 hours

Sofia is expected to work for 5.5 hours

3 0
3 years ago
Resources are used efficiently in the sunhat market because when​ _______.    A. production is capital​ intensive, producer surp
Bad White [126]

Answer:

The correct answer is B

Explanation:

Resources are used efficiently in the sunhat market because when marginal social benefit equals marginal social cost, total surplus is maximized. Thus, From the given four options only the option B is the correct option.

MSC = Marginal Social cost

MSB = Marginal Social Benefit

It is becuase in the competitive market, the quantity that is supplied in the market in same to the quantity which is demanded.

6 0
3 years ago
Teal Mountain Inc. issues $5.0 million, 10-year, 8% bonds at 101, with interest payable on January 1. The straight-line method i
Troyanec [42]

Answer:

Dec. 31

Dr Interest expense $405,000

Cr Discount on bonds payable $5,000

Cr Cash $400,000

Explanation:

Preparation of the journal entry to record interest expense and bond premium amortization on December 31, 2022

Dec. 31

Dr Interest expense $405,000

($400,000+$5,000)

Cr Discount on bonds payable $5,000

[$5,000,000 - ($5,000,000 x 101/100)/10]

Cr Cash ($5,000,000 x 8%) $400,000

(To record interest expense and bond premium amortization)

8 0
3 years ago
The following income statement is provided for Vargas, Inc. Sales revenue (2,500 units × $60 per unit) $ 150,000 Cost of goods s
Likurg_2 [28]

Answer:

The correct answer is 3.

Explanation:

According to the scenario, the computation of the given data are as follows:

Variable cost = Cost of goods sold (variable) + Supplies

= $50,000 + $10,000 = $60,000

Fixed cost = Cost of goods sold (fixed) + Administrative salaries + Depreciation

= $8,000 + $42,000 +$10,000 = $60,000

So, we can calculate the operating leverage by using following formula:

Operating leverage = Contribution margin ÷ Net operating income

Where, Contribution Margin = Sales revenue - Variable cost

= $150,000 - $60,000 = $90,000

And Net operating income = Contribution Margin - Fixed Cost

= $90,000 - $60,000 = $30,000

By putting the value, we get

Operating leverage = $90,000 ÷ $30,000

= 3

3 0
3 years ago
Maria has started a lawn care service about a year ago. She did
Yuliya22 [10]
I believe it’s growth
6 0
3 years ago
Read 2 more answers
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