Answer:
The correct statement is: "The fixed cost per unit will decrease when volume increases."
Explanation:
Total fixed costs remain the same within a relevant range, but the <em>fixed cost per unit</em> decreases as production increases, because the same fixed costs are spread over more units produced.
Answer:
The selling price today = $28.536
Explanation:
The question states that D0 is $1.5.
To calculate price, we need to calculate Present value of future dividends along with a terminal value from the time the dividend growth is becoming constant.
The D1 growth will be 20% of D2.
The fall in dividend growth will be 5% till it reaches 5%.
- P0 = D1 / (1+r) + D2 / (1+r)² + D3 / (1+r)³ + D4 / r-g
- Where,
- r = required rate of return
- g = growth rate
Thus,
P0 = 1.5*(1.2) / (1+0.15) + 1.5*(1.2)*(1.15) / (1+0.15)² + 1.5*(1.2)*(1.15)*(1.1) / (1+0.15)³ + 1.5*(1.2)*(1.15)*(1.1)*(1.05) / (0.15 - 0.05)
P0 = $28.536
Answer:
it's production possibilities frontier is also its consumption possibilities frontier
Explanation:
The production possibilities frontier shows the various combinations for the two goods an economy can produce when all its resources are fully employed.
The consumption possibility frontier, is the budget constraint where participants in international trade can consume. When a country doesn't participate in trade, it is this constraint identical to the the production–possibility frontier
Answer:
c. $4,000
Explanation:
Depreciation expense is the appropriate portion of a company's fixed asset's cost that is being used up during accounting period. Under straight-line method, depreciation expense is calculated by formula:
Straight-Line Depreciation Expense = (Cost − Residual Value)
/Useful Life of the Asset
For year 2, depreciation expense = ($25,000-$5,000)/5 = $4,000
Noted:
Depreciation Expense is different from Accumulated depreciation. Accumulated depreciation is the total amount of depreciation expense for an fixed asset that is recorded on the balance sheet. In this situation, the Accumulated depreciation after 2 years is:
Depreciation expense in year 1 + Depreciation expense in year 2 = $8,000
I'm thinking it could be Technology. Hope I helped (: