Answer:
(D) Operating income will increase by $27,300.
Explanation:
The sales increase will also generate an increase in the variable cost
The fixed cost, remaing unchanged against the volume of production. they do not increase or decrease at the factory level.
So the operating income will increase by the diffrence between sales and variable cost
sales increase will be:
779,000 x 10% = 77,900
variable cost increase:
506,000 x 10% = 50,600
increase in operating income 77,900 - 50,600 = 27,300
Answer:
9.5 %
17.3%
Explanation:
The market required rate of return = risk free rate + ( Market Beta × Market risk premium)
= 3.5% + (1 × 6%) = 9.5%
The stock required rate of return = 3.5% + (2.3 × 6%) = 0.173 = 17.3%
I hope my answer helps you
Answer:
The answer is 1000 dollars.
Explanation:
In this question we are asked to calculate the cash closing balance as at 30 september. The opening cash balance that is 10000 dollars is given and, data related to the receipt and payments made in the quarter ended at september is also provide in the question.
We can easily calculate the cash balance as at 30 september with the help of accounting equation given below.
Closing Balance = Opening balance + Cash collections- Cash payments
= 10,000+ 209,000- 218,000*
= 1000$
* It include sum of all capital expenditures, operating expenses and purchases of direct material.
The reason is that they make it more efficient to deliver necessary goods and services to consumers.
<span>In pure competition, producers compete exclusively on the basis of p</span>roduct features.
