Answer:
Increase by $37,100.
It will accept any time the price is above $43 with the condition it will not incur in additional fixed cost.
$63. is the sales price that generates 106,000 dollar of operating income
Explanation:
As the units will not inccur in any additional fixed cost we should check for the contribution margin this units will provide:
50 dollars - 43 dollar of variable cost = 7 dollars
5,300 saws x $7 = 37,100
The sales reveues will increase by that amount.
(5,300 x $43 dollars each in cost + 106,000 contribution )/5,300 = sales price
sales price = 63
Answer:
the capital structure weight of the firm's equity will be 57.14 %.
Explanation:
Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.
A debt–equity ratio of 0.75 means:
Debt : Equity = 0.75 : 1
The Total Ratio will be = 0.75 + 1.00
= 1.75
Therefore, the capital structure weight of the firm's equity will be :
Equity Weight = Equity Ratio ÷ Total Ratio
= 1.00 ÷ 1.75
= 0.5714 or 57.14 %
Answer:
An increase in the price of one substitute good causes a decrease in supply for the other.
Explanation:
I just took a test on this subject last week :)
Answer:
personalization.
Explanation:
Based on the information provided within the question it can be said that the one thing that your website does not offer is personalization. This refers to allowing your customers to choose the parts of the product that they want and the ones they do not in order to create and order a version of the product that fits their needs. Which, as a phone manufacturer you cannot do since phone models are fixed products that do not have swappable parts.
Answer:
B) the issuance of bonds.
Explanation:
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
As such, the sale of additional shares of stock, net income and declaration of dividend are typical reasons for changes in shareholder's equity however, the issuance of bonds is a liability (usually non-current).
