Answer:
The crossover point is 50 units.
Explanation:
Giving the following information:
Process A:
Fixed costs of $1000
Variable costs of $5 per unit.
Process B:
Fixed costs of $500
Variable costs of $15 per unit.
<u>First, we need to structure the total cost formula:</u>
Process A= 1,000 + 5x
Process B= 500 + 15x
x= number of units
<u>Now, we equal both formulas and isolate x:</u>
1,000 + 5x = 500 + 15x
500 = 10x
50=x
The crossover point is 50 units.
Answer:
$606, 500
Explanation:
Initial Capital = $540,000
Initial Capital + Increase in Assets - Increase in Liabilities
$540,000 + $96,500 - $30,000 = $606,500
Answer:
Following are the answer to this question:
Explanation:
Following are the paragraph to this question:
It was great this course! It's formatting, which includes its course to make it's navigating and understanding quickly. Its tasks were also challenging enough just to participate with both the substance, and they're not challenging enough just to create discomfort or feel confused.
Answer:
a) Net present value of investment = $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
Explanation:
Data provided in the question:
Cost of the asset = $215,000
Rate of return = 12% = 0.12
Now,
Present Value of Net Cash Flows = Net cash flow × Present value factor
also,
Present value factor = (1 + rate)⁻ⁿ
here,
n is the year
thus,
Year 1 Net cash flows Present value factor Present value
1 77,000 0.89286 68,750
2 54,000 0.79719 43,048
3 82,000 0.71178 58,366
4 172,000 0.63552 109,309
5 38,000 0.56743 21,562
Total 423,000 301,036
a) Net present value of investment = Total present value - Amount invested
= 301,036 - 215,000
= $86,036
b) Since the Net present value is positive thus, Beyer should accept the investment
If the demand for product x is inelastic, a 15 percent decrease in the price of x will: Reduce by more than 15 percent the amount of X that is being requested. Reduce by less than 15 percent the amount of X that is being requested.
This is further explained below.
<h3>What is the inelastic market?</h3>
Generally, An economic concept known as inelastic refers to an item or service's static quantity when its price varies. When a product's price increases or decreases, customers' purchasing patterns are said to be inelastic, which indicates that neither change affects the other.
In conclusion,If there is no elasticity in the demand for product x, then a price reduction of 15% for product x will have the following effects: The quantity of X that is being requested should be decreased by more than 15 percent. The quantity of X that is being sought should be decreased by more than 10 but less than 15 percent.
Read more about the inelastic market
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