Answer:
c. difference between total variable costs and total costs at a particular activity level
Explanation:
The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.
Variable cost per unit is found by : change in cost divided by the change in activity level for two points
Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>
Highest activity units - lowest activity units
Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost
Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)
Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]
Answer:
a. economies of scale.
Explanation:
Local electricity companies generally have natural monopolies resulting from both economies of scale and/or control of natural resources. Economies of scale refers to the average total costs decreasing as the total output generated by the company increases. For example, it is extremely expensive to generate electricity for 1 single home, but the average total cost for generating electricity for 1 million homes is very low. Generally utilities are monopolies because it is very expensive to set and start operating the company, but once it is operating its average costs per consumer are very low.
Being forced to stand in the hot sunenduring beatingscatching diseases<span>getting shot</span>
Answer:
B) $195,700.
Explanation:
issued at 103 of 1,000:
200 bonds x $ 1,000 x 103/100 = 206,000
Nopw we solve lie this was an acquisition under lump sum, we have to weight each concept market value and apply it agaisnt the actual proceeds:
![\left[\begin{array}{cccc}Item&Value&Weight&Allocated\\$Bonds&190000&0.95&195700\\$Warrants&10000&0.05&10300\\&&&\\$Total&200000&1&206000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DItem%26Value%26Weight%26Allocated%5C%5C%24Bonds%26190000%260.95%26195700%5C%5C%24Warrants%2610000%260.05%2610300%5C%5C%26%26%26%5C%5C%24Total%26200000%261%26206000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
190,000 / 200,000 = 0.95
10,000 / 200,000 = 0.05
Then we multiply this by the 206,000 proceeds.
Answer:
Sandra will deposit $ 18,197.75
Explanation:
It need to obtain 26,000 dollars in five years.
She will invest at 7.20 annual compounding quarterly.
We need to know to calculate the lump sum Sandra needs to deposit today.
We use present value of a lump sum formula:
Maturity $26,000
time 20 (five years x 4 quarters per year)
rate 0.018 (7.2 / 4 quarter per year)
PV 18,197.75
