The break even level of sales is <span>$1400</span> +$13*n
Answer:
E
Explanation:
In this question, we are told to state what the reaction of Koka and Zola will be;
Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.
Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .
So both Kukla and Zola are happy with the offer.
<span>A shoe department carries more than 55 different styles of white sandals. this is a description of the shoe department's merchandise depth.
When you mix the product (merchandise) depth (variety) and product breadth (full amount) you are left with the </span>product or merchandise mix. In this case, a shoe department store that has 55 styles, has a large merchandise or product depth.
Answer:
b. providing a subsidy to correct for an underallocation of resources.
Explanation:
When the external benefit of an activity exceeds cost, the activity generates postive externality.
Activities that generate positive externality are usually under produced usually because of the high cost of production . Government can encourage production of activities that generate positive externality by giving subsidy which reduces the cost of production and increases production.
I hope my answer helps you
Answer:
1. a) EQUITY = $ 5,036.68
b) DEBT = $ 10,263.32
2. a) EQUITY = $ 4,852.29
b) DEBT = $ 12,247.79
3. PROJECT A
4. Yes
Explanation:
Current market value of the firm’s assets = $13,800
Total Value of Firm = $13800 a-1 NPV of Project A = $1,500 Total Value of Firm if selects Project A = Current Value + NPV of the new Project = $13800 + $1500 = $15,300 Value of debt = $12000 Value of Equity= Value of Firm -Value of Debt = $15300 - $12000 = $3300 a-2 NPV of Project B = $2300 Total Value of firm if selects project B = Current Value + NPV of the new Project = $13800 + $2300 = $16100 Value of Debt = $12000 Value of Equity = Value of Firm -Value of Debt = $16100 - $12000 = $4,100
Therefore,
1. a) EQUITY = $ 5,036.68
b) DEBT = $ 10,263.32
2. a) EQUITY = $ 4,852.29
b) DEBT = $ 12,247.79
3. PROJECT A
4. Yes