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dangina [55]
2 years ago
13

If revenues are greater than total variable costs of production but less than total costs, a firm A) earns a profit. B) suffers

a loss. C) breaks even. D) shuts down.
Business
2 answers:
vesna_86 [32]2 years ago
8 0

Answer:

C) breaks even.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Hence, if revenues are greater than total variable costs of production but less than total costs, a firm breaks even because the amount of money being generated is greater than the cost of running the business.

Colt1911 [192]2 years ago
5 0

Answer: B) suffers a loss.

Explanation:

If revenue is less than total costs, it means that the company is incurring losses because profit is calculated by deducting costs from revenue.

Just because the variable costs are being covered does not mean that the company will make a profit. All costs need to be covered for profit to be made. If the Average variable costs become more than the average revenue, the company should shutdown.

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Bedeker, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue cu
navik [9.2K]

Answer:

The required rate of return is 7.20%

Explanation:

The price of a share that pays a particular dividend amount in perpetuity is given by the below formula:

price of share=dividend/required rate of return

price of share is $91.00 per share

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$91=$6.55/required rate of return

required rate of return =$6.55/$91

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to confirm the required of return,I divided the by the required rate of return as shown below:

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That is a way to validate the computed required rate of return

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