Answer:
C
Explanation:
This case is en example of Planned, unfunded retention because here the outcome is already known but nothing can be done about it. So this does not affect our managerial and financial decision making.
Unfunded retention is type of retention plan under which losses are paid out of cash flow or out of funds obtained by borrowing
Answer:
$300 has been reduced from the money supply.
Explanation:
The taxes act as leakage from the circular flow of money. Unless they are spent and injected back as government spending they would be treated as a leakage that has left the circular flow.
Similar effect happens with the savings amount. A saving is a leakage and thus the remaining amount which is $20 after paying for golf clubs and taxes can also be said to have left the circular flow of income and so reducing money supply.
$100 of the original $400 is still left in the flow and money supply as it is still in the checking account after the transaction.
Hope that helps.
The difference in operating income between processing the cat bowls further versus selling them off at the split-off point is -$1,920.
<h3>What is operating income?</h3>
Operating income is the adjusted revenue of a business after all operating costs and depreciation have been taken into account. The charges incurred to maintain the operation of the business are known as operating expenses.
Calculating the operational income difference:
After additional processing, sales income (1000*14) 14000
At the split-off point, sales revenue (1000 x 11) 11000
3000 in additional revenue
Cost Incremental -4920
Increased revenue (loss) -1920
Operating income (loss) difference = -1920
The ability of your company to make money from its operational activities is demonstrated by operating income. The operating income figure is frequently used by business owners to assess the operational success of their enterprise. Potential creditors and investors might be interested in your company's operating income.
To learn more about operating income refer to:
brainly.com/question/11110287
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Answer:
1) True, because MR = P[1-1/e] demand is elastic if e> 1. Thus for e>1 MR is positive.
2) False, because for elastic demand increase in price will lead to fall in revenue.
3) False, because MR will be zero.( MR = P[1-1/e], put e = 1)
4) True, because MR will be positive
5) FaIse
Answer:
4.62 years
8.02%
Explanation:
The payback period is the number of years it would take the investment to recoup itself.
Payback=initial capital outlay/annual cash flow
initial capital outlay is the cost of the new machine plus installation cost minus the salvage value of the old machine.
initial capital outlay=$40,070+$1,200-$2,000=$ 39,270.00
Annual cash flow is the reduction in operating costs of $8,500 per year
payback =$ 39,270.00/$8,500.00=4.62 years
The internal rate of return is computed in the attached
