The crossover point is that production quantity where total costs for one process equal total costs for another process. Hence, option D is correct.
<h3>What is crossover point?</h3>
Financial independence is secured when investment income exceeds regular income. In financial jargon, this is known as the "cross over point."
When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.
Thus, option D is correct.
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All options are missing firm the question-
a. variable costs of one process equal the variable costs of another process.
b. fixed costs of a process are equal to its variable costs.
c. total costs equal total revenues for a process.
d. total costs for one process equal total costs for another process.
e. the process no longer loses money.
Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:
The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:
the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
Product life cycle is important for a business to focus on the introduction stage then the growth stage because the products to gain distribution as the product is initially new in the market. The quality of product is not assured and the price of the product will also determine as low or high.
Explanation:
- The cost is going to be on a higher side.
- The sales will be slow since there is no awareness of the product.
- There might be little or no competition in the market.
- You make very little money of the product sold.
- Customer are to prompted to take initiate into the product.
- Demand has to be created.
- Marketing cost at the highest level because of recognition.
- Profit is received from product is very minimal.
- First impression is the last impression that impression is created
- In the introduction of the product.
