Answer:
$810,000
Explanation:
The computation is shown below:
The increase in fixed cost is
= Salary of each sales representative × number of sales representatives hired
= $45,000 × 18
= $810,000
Now the increase in sales needed for break even is
= Increase in fixed cost ÷ Contribution margin ratio
= $810,000 ÷ 30%
= $2,700,000
As we know that break even sales is computed by dividing the fixed cost by the contribution margin ratio and we applied the same
Hi!
The answer to your question should be B. Pays the difference of the current value to the amount you owe.
You can use a GoPro<span> at Disney as long as it isn't on a selfie stick/gopole. If </span>you<span> have it on a </span>chest mount<span>, head mount, wrist or hand mount it is ok.</span>
Answer:
Carriage Inc. should not invest in the new plant because the IRR of the project is less than its cost of capital.
Explanation:
The investment should NOT be made in the new plant because its internal rate of return is lower than Carriage's cost of capital.
In simple language since the return (IRR) that will be gotten from the new plant is LOWER than the cost (cost of capital), then the company is not making a profit if it invests in this new plant.
Generally, as a decision rule, a company should only invest when the IRR is higher than (or equal to) its cost of capital.
