When marginal revenue is equal to the marginal cost, then the firm should increase the level of production to maximize its profit.
Marginal revenue simply means the increase in revenue that a company makes as a result of selling an additional output of good. Marginal cost is the cost that a company incurs for production of one extra unit of good.
It should be noted that when the marginal cost if a firm is more than the marginal revenue, it means that the firm is producing too much.
When the marginal revenue of the firm equals the marginal cost, then the firm should maximize its profit.
The correct option is A.
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Answer:
B) fit for the ordinary purpose for which such goods are used.
Explanation:
An implied warranty of merchantability means that the products sold should fulfill an ordinary buyer's expectations and should be fit for the purpose intended.
All products carry an implied warranty of merchantability unless expressly disclaimed or identified as a sale "with all faults" or "as is".
Companies with residual dividend policies priorities paying capital expenditures out of earnings.
<h3>What is payout ratio?</h3>
The payout ratio, which is calculated as a percentage of the firm's total earnings, demonstrates the part of earnings that a company distributes to its shareholders in the form of dividends. By dividing the total dividends given out by the net income made, the computation is arrived at.
For dividend investors, the dividend payout ratio is a crucial indicator. It demonstrates how much of a company's earnings are distributed to investors. The higher that number, the less cash a corporation has left over to fund dividend growth and corporate expansion.
Companies with residual dividend policies priorities paying capital expenditures out of earnings. Any unused revenues are then used to pay dividends. Long-term debt and equity are often both parts of a company's capital structure.
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Answer:
The aftertax salvage value of the machine is D) $10,134
Explanation:
Hi. first, we need to find out the book value of the machine at the selling date, that is 3 years from now, and the book value is as follows.
Since taxes are based on the profit you make by selling something, our profit is:
Therefore, our taxes are:
So, the after tax salvage value of the machine is the money you received on the sale minus the taxes you have to pay, that is:
Salvage Value of the Machine = $12,000 - $1,866?= $10,134
That is option D)
Best of luck.
Answer: $352,000
Explanation:
The information needed to calculate the cash and cash equivalent are:
Balance in checking account, Bank of the East = $ 382,000
The restricted cash included in the checking account = $49,000
Treasury bills = $19,000
We subtract the restricted cash from the balance in the checking account and then add it to the treasury bills. This will be:
= ($382,000 - $49,000) + $19,000
= $333,000 + $19,000
= $352,000
