Using the "Thinking at Margin" methodology, the relevant statement for a television maker to consider while making a choice is as follows: the average cost of ten TVs is one hundred dollars apiece. Option C. This will be discussed in further detail below.
<h3>What exactly does "Thinking at Margin" entail?</h3>
In most cases, it means giving some consideration to the action that will come next in your plan. The word "marginal" may also be used to signify "additional." The first glass of lemonade you drink on a hot day will quench your thirst, but successive glasses may not have the same impact on you.
When you contemplate at the margin, you are considering what the next or succeeding action will mean for you on an individual level.
In conclusion, using the "Thinking at Margin" technique, the following are the essential points for a television producer to take into consideration before making a decision when it comes to television programming: The usual cost of creating ten televisions is one thousand dollars each. Alternative C
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Answer:
Rights needed for each new share = 8.14 rights
Explanation:
Amount needed to expand = $1.6 million
465,000 shares of stock outstanding at a market price per share of $32.50
The subscription price = $28
Number of rights issued = 1 right per share × 465,000 shares
Number of rights issued = 465,000 rights
Number of shares needed = $1,600,000 / $28
Number of shares needed = 57,142.857
Rights needed for each new share = Number of rights issued / Number of shares needed
Rights needed for each new share = 465,000 / 57,142.857
Rights needed for each new share = 8.14 rights
Answer:
$630
Explanation:
Calculation for her new premium if she transfers to the Superior Insurance Company
First step
Drivers aged 24 to 49 0.05
Discount for cars with antitheft device 0.11
Driving Course 0.03
Accident Free 0.06
TOTAL 0.25
Second step is to Calculation for her new premium
New premiun=$840*(1-0.25)
New premium =$840*0.75
New premium =$630
Therefore her new premium if she transfers to the Superior Insurance Company will be $630
Answer:
$25
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$2.5 / (0.1 - 0) = $25
Answer:
C. Stay Open because Shutting Down would be More Expensive
Explanation:
Although it is quite obvious that in the short-run the business is not breaking even, based on the available options, staying open will be the best current course of action. Staying open and seeing if the trend of things change in coming fiscal years or financial periods will be better than shutting down.
Shutting down takes alot of processes that are quite expensive. Some of the processes include
- The Decision to Close
- File dissolution documents
- Cancel registrations, permits, licenses, and business names
- Comply with employment and labor laws
- Resolve financial obligations
- Maintain adequate records
These processes are expensive and since the business does not know what is causing the inability to cover its entire costs, it should investigate and find ways of increasing its total revenue to cover its entire costs before deciding to shut down completely.
a. Shut Down- Shutting Down is More Expensive
b. Exit the Industry- There isn't enough information to know exactly why the business is not making a profit