In an incremental analysis, the only costs to be considered are:Select one:a. variable costs.b. sunk costs.c. manufacturing costs.d. relevant costs.
Answers
Only relevant costs or expenses should be taken into account in an incremental analysis. Option d is Correct.
The cost of producing an extra unit of a product is known as the incremental cost. Incremental cost analysis is a tool that businesses may use to assess the profitability of different business units. If incremental costs are more than incremental revenue, a corporation may suffer a loss.
In an incremental analysis, pertinent expenses could be included in: Variable costs: These expenses might differ from one choice to the next. Costs that are constant across all possibilities are known as non-variable costs.
Opportunity costs: These expenses are related to the expansion or contraction of alternative sources of income. As sunk costs are historical costs that have already been incurred in the past, they are never taken into account in incremental analyses. Option d is Correct.
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In an incremental analysis, the only costs to be considered are relevant costs. Relevant costs are costs that are directly affected by a decision and will change depending on the decision made. These costs can be either variable or fixed and may include costs such as direct materials, direct labor, and variable overhead. The correct option is d.
Sunk costs, on the other hand, are costs that have already been incurred and cannot be changed or recovered, regardless of the decision made. Therefore, sunk costs should not be considered in an incremental analysis because they are not relevant to the decision at hand. Manufacturing costs, which include both direct and indirect costs related to production, may be relevant or irrelevant depending on the decision being made.
For example, if the decision is whether to continue producing a product or discontinue it, then the manufacturing costs would be relevant because they would be directly affected by the decision. However, if the decision is whether to invest in new equipment or not, then the manufacturing costs may not be relevant because they would not change based on the decision.
Overall, in an incremental analysis, it is important to focus on relevant costs and ignore sunk costs and irrelevant costs such as fixed overhead. This allows decision-makers to make informed decisions based on the costs that are directly affected by the decision.The correct option is d.
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Related Questions
Problem 3
Intro
Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a year forever. The stock currently sells for $62 a share.
The before-tax cost of debt is 5% and the tax rate is 34%.
The target capital structure consists of 20% debt and 80% equity.
Attempt 7/10 for 10 pts.
Part 1
What is the company's weighted average cost of capital?
Answers
Weighted Average Cost of Capital (WACC) is the average cost of funds used to finance a company's assets, with each element being weighted proportionately. The WACC formula is expressed as:
WACC = E / V x Re + D / V x Rd x (1 - Tc), Where: E = market value of the company's equity, D = market value of the company's debt, V = total value of capital (equity plus debt), Re = cost of equity, Rd = cost of debt, Tc = corporate tax rate, To calculate the company's weighted average cost of capital (WACC), the formula can be used with the given information: Data given: Dividend to be paid in one year = $4.82Dividend growth rate = 4%Current stock price = $62Before-tax cost of debt = 5%Tax rate = 34%. Target capital structure consists of 20% debt and 80% equity Formula to calculate ReRe = (D1 / P0) + g, Where: D1 = next year's dividendP0 = current stock price, g = dividend growth rate Re = (4.82 x 1.04) / 62 + 0.04= 0.1241 = 12.41%Formula to calculate RdRd = Kd x (1 - T)Where: Kd = before-tax cost of debt T = tax rateRd = 5% x (1 - 0.34)= 3.3%Using the given data, the weights of debt and equity are: Weight of debt = 20%Weight of equity = 80%.
Using the formula for WACC, the calculation can be done as: WACC = E / V x Re + D / V x Rd x (1 - Tc)= 0.80 x 12.41% + 0.20 x 3.3% x (1 - 0.34)= 0.09928 + 0.0432= 0.14248 or 14.25%. Therefore, the company's weighted average cost of capital (WACC) is 14.25%.
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Converse, Hollister and more have been accused of using child labor so they can
increase profit. It's more expensive to produce items in North America or other
developed countries than elsewhere because they have higher minimum wages. For
example, instead of paying $10 to someone making clothes in Canada per hour,
companies can pay workers 10 cents (Canadian money) each week in India. It's easy
to replace workers if they like, it's also dependable because workers in India are
forced to work and they'd be abused if they refuse or disobey their orders. What is
this?
A. Trade Deficit
B. Sweatshop
C. Countertrade
D. Strategic Alliance
Answers
Answer:
B. Sweatshop
Explanation:
let me know if I'm wrong
Laura’s husband died in a car accident. When she turns 67, she will receive her husband’s __1___. Her children will also receive the same until they ___2___ .
1. 401k account
social security benefits
certificate of deposit
2. gradute from high school
retire
become employed
this is on plato
i will give brainliest
Answers
Answer:
1. social security benefit
2.retire
A customer's confirmation of a municipal securities transaction must include A) the highest potential yield the customer may receive and the amount of markup or markdown in a principal transaction. B) the lowest potential yield the customer may receive and information regarding the catastrophic call provision. C) the highest potential yield the customer may receive and information regarding the catastrophic call provision. D) the lowest potential yield the customer may receive and whether the bond is taxable or subject to the alternative minimum tax.
Answers
Answer:
D) the lowest potential yield the customer may receive and whether the bond is taxable or subject to the alternative minimum tax.
Explanation:
All municipal securities are exempted from registration and filing requirements of the Securities and Exchange Commission (SEC).
However, a customer's confirmation of a municipal securities transaction must include the lowest potential yield the customer may receive and whether the bond is taxable or subject to the alternative minimum tax.
This is September. The the price of the December maturity euro futures contract, which is traded on the Chicago Mercantile Exchange (CME), is $1.05/€. A trader, believing that the euro will rise in the near future, purchased one December euro futures contract at the price and plan to hold it for one week. Each contract has a standardized size of €125,000. Suppose one week later, the euro futures price goes up to 1.10/€, and the investor sells the contract.
Answers
The profit from this transaction is $6,250.
The profit from a futures contract can be calculated by taking the difference between the selling price and the buying price and multiplying it by the contract size.
Profit = (Selling Price - Buying Price) × Contract Size
In this case, the buying price of the December euro futures contract was $1.05/€ and the selling price was $1.10/€. The contract size is €125,000.
Profit = ($1.10/€ - $1.05/€) × €125,000
= $0.05/€ × €125,000
= $6,250
Therefore, the profit from this transaction is $6,250.
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Allen Furniture Company is considering offering an inexpensive line of college dorm and apartment furnishings. If they move forward, they will renovate part of their store to accommodate this new stock. Before spending the money to redesign the store, they first want to find out customer interest. In a short response of approximately 100 words, describe some of the steps they should take as they consider this project.
Answers
Answer:
Allen Furniture Company should look into conducting a survey to gauge customer interest to find what they look for, need, and find attractive. They could do so by going to college campuses and conducting random interviews. For their apartment furnishings, they could look online to see what kind of product sell and do an analysis of customer interest that way and they could also conduct a survey for people that live in apartments. They could also look into a consultant that specializes in the field and is experienced with what customers like or want.
what is a business?
Answers
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.
An annual report promotes an open
line of ____
for all those
invested in a company.
A. capital
B. liability
C. communication
Answers
Answer:
I woulod say c
Explanation:
it makes the most sense
Why have many developing countries failed to benefit from the spread of free trade around the world?
O A. Developed countries have stopped giving large amounts of foreign aid at the same time that trade barriers have come down.
O B. Developing countries don't possess the natural resources needed to fuel industrial production.
O C. Developing countries owe so much debt that their governments aren't able to invest in infrastructure improvement.
O D. Developed countries continue to maintain high tariffs on the agricultural goods that developing countries export in large numbers.
Answers
The reason why many developing countries have failed to benefit from the spread of free trade around the world is C. Developing countries owe so much debt that their governments aren't able to invest in infrastructure improvement.
Why are developing countries not benefitting from international trade ?Developing countries often lack the infrastructure and resources to effectively compete in global markets. This can make it difficult for them to access markets and sell their products.
Developing countries may not have access to the latest technology, which can make it difficult for them to compete with more developed countries.
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why is there an upward-sloping marginal cost curve?
Answers
Answer:
The marginal cost curve is generally upward-sloping, because diminishing marginal returns implies that additional units are more costly to produce.
Explanation:
Describe the arrangement many parents and students make if the parent decides to take out a Parent PLUS Loan.
I NEED A ANSWER AS QUICKLY AS POSSIBLE I NEED TO TURN IN THIS TODAY
Answers
Parents of dependent undergraduates may use Direct PLUS Loans, which are federal loans, to aid with the cost of attending college or a career school. PLUS loans can help pay for educational expenses that other types of financial aid do not cover.
Are parents need to obtain a parental PLUS loan?A PLUS loan request from one parent only needs to be turned down. The student is not qualified for higher Stafford Loan limitations, though, if one parent is refused a PLUS loan while the other is authorized for one.
Is obtaining a parental PLUS loan simple?Although parent PLUS loans have fewer stringent credit standards than student loans from private lenders, your application could still be rejected if you have a poor credit history that will last for longer than a year. contracts for the sale of products worth more than $500.
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What might you tell her about career resources and their importance in career selection?
Answers
Answer:
I would like to tell her that it is good that she has chosen her career but there is no harm in taking the help of the career resources as it will clarify her path and clear her conflicts if any. Moreover, it can help in her career selection and give her some ideas of the pros and the cons of the field she is choosing. Taking assistance of the resources can give major idea of the experiences and the instances from other’s life and can influence her decision in the positive way.
Explanation:
edge
8. Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 12% and 16%, respectively. The beta of A is 0.7, while that of Bis 1.4. The T-bill rate is currently 5%, whereas the expected rate of return of the S&P 500 index is 13%. The standard deviation of portfolio A is 12% annually, that of B is 31%, and that of the S&P 500 index is 18%. (LO 18-2)
a. If you currently hold a market-index portfolio, would you choose to add either of these portfolios to your holdings? Explain.
b. If instead you could invest only in T-bills and one of these portfolios, which would you choose?
Answers
a. If you currently hold a market index portfolio, you should choose to add portfolio B to your holdings rather than portfolio A because the expected rate of return on portfolio B is 16%, which is higher than the expected rate of return on portfolio A, which is 12%.
Since beta measures a portfolio's systematic risk or volatility compared to the market portfolio, a higher beta indicates higher systematic risk or volatility. Since Portfolio B has a higher beta (1.4) than Portfolio A (0.7), this is consistent with Portfolio B being more volatile than Portfolio A.
However, portfolio B's higher expected return of 16% may be adequate to compensate for this additional risk. As a result, portfolio B provides a higher rate of return with a higher degree of risk.
b. If you can only invest in T-bills and one of these portfolios, you should choose portfolio A because it has a lower standard deviation of 12% compared to portfolio B's 31%, which makes it less volatile and more stable.
The expected rate of return on portfolio A is 12%, which is greater than the T-bill rate of 5%. As a result, portfolio A has a higher expected return, but it also has lower risk and volatility, making it a safer and more stable choice than Portfolio B.
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HELPPPP!!!! WILLL GIVE BRAINLEST!!!
It allows you to rent a car while yours is being repaired. a. auto replacement c. personal damage liability b. comprehensive physical damage d. rental reimbursement
Answers
Answer:
I'm pretty sure the answer is d
Explanation:
Alternatively, you may pay out-of-pocket for your rental then seek reimbursement from the other insurance company once it completes its investigation.
Answer:
D
Explanation:
you notice a co-worker putting pencils and sticky notes into his bag to take home. which workplace attitude is this employee not demonstrating?self-confidencedependabilityhonestypunctuality
Answers
The workplace attitude that the employee is not demonstrating in this scenario is honesty.
Honesty in the workplace is a crucial aspect of maintaining a positive and ethical work environment. It involves being truthful, trustworthy, and transparent in all interactions and communications. Here are some key aspects of honesty in the workplace:
1. Truthfulness: Being honest means accurately representing facts, information, and data without distortion or deception. It involves avoiding false statements or misleading others.
2. Integrity: Demonstrating integrity means adhering to ethical principles and values in all aspects of work. It involves acting in a way that is consistent with moral and professional standards.
3. Trustworthiness: Being honest builds trust with colleagues, supervisors, and clients. Trust is the foundation of effective teamwork, collaboration, and successful business relationships.
4. Transparency: Openly sharing relevant information and being transparent about actions, decisions, and processes fosters a culture of honesty. Transparency helps prevent misunderstandings and promotes accountability.
5. Admitting Mistakes: Honest individuals are willing to acknowledge and take responsibility for their mistakes. They strive to rectify errors and learn from them, rather than trying to cover them up.
6. Respecting Confidentiality: Honesty includes respecting and maintaining confidentiality when handling sensitive or private information. It involves upholding confidentiality agreements and not sharing information without proper authorization.
7. Ethical Decision-Making: Honesty involves making ethical choices and decisions, considering the impact on others, and avoiding conflicts of interest. It means acting in the best interests of the organization and stakeholders.
By practicing honesty in the workplace, individuals contribute to a positive work culture, build trust, enhance collaboration, and uphold the values of integrity and professionalism.
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"An open forum where anyone can start a new discussion at any time, and in which discussion topics are displayed with
'Discuss the topic' links.", is an example of what type of Discussion Forum?
Select one:
O a. Simply Discussion Forum for General Use
O b. Question & Answer Forum
O c. Standard Forum Displayed in a Blog-like Format
O d. Open-ended Discussion Forum
Answers
Answer: Open-ended Discussion Forum
Explanation:
An open forum where anyone can start a new discussion at any time, and in which discussion topics are displayed with 'Discuss the topic' links.", is an example of an open ended discussion forum.
An open ended question simply refers to a question whereby anyone can start a conversation by asking a particular question and anyone who has a say to the question or some information regarding the question can post it and a conversation can then follow.
a firm is deciding between two different sewing machines. technology a has fixed costs of $840 and marginal costs of $60 whereas technology b has fixed costs of $540 and marginal costs of $110. at what quantity is the firm indifferent between the two technologies?
Answers
The firm will be indifferent between the two technologies when the total costs of both technologies are equal. To find this quantity, we need to set up an equation and solve for it.
Let's denote the quantity of units produced as "Q". The total cost for technology A can be calculated as follows:
Total cost of technology A = Fixed costs of technology A + Marginal costs of technology A * Q
= $840 + $60 * Q
= $840 + $60Q
Similarly, the total cost for technology B can be calculated as:
Total cost of technology B = Fixed costs of technology B + Marginal costs of technology B * Q
= $540 + $110 * Q
= $540 + $110Q
To find the quantity at which the firm is indifferent between the two technologies, we need to set up an equation:
$840 + $60Q = $540 + $110Q
Now let's solve for Q:
$60Q - $110Q = $540 - $840
-$50Q = -$300
Q = -$300 / -$50
Q = 6
Therefore, the firm will be indifferent between the two technologies at a quantity of 6 units.
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7. Another example of opportunity cost is a company's cost of capital. Suppose a manufacturer wants to add
microwave ovens to its product line. To do this, it must invest $500,000 in new equipment.
Besides the original investment, the company estimates it would spend $200,000 per year on production
costs for labor and materials. It also estimates that it could sell about $225,000 worth of microwave ovens
each year. Would it benefit the company to manufacture the microwave ovens if it could earn 10 percent
interest by purchasing U.S. Treasury bonds with the $500,000? Explain your answer.
Answers
Answer:
You should invest in US bonds because you will be able to earn a higher return than if you build and sell microwaves.
Explanation:
alternative 1, build and sell microwave ovens:
initial outlay = $500,000
net cash flow per year = $225,000 - $200,000 = $25,000
alternative 2, invest in US securities:
investment = $500,000
net cash flow per year = $500,000 x 10% = $50,000
Opportunity costs are the benefits lost or extra costs resulting from choosing one activity or investment over another.
If you choose to build and sell microwaves, you will not be able to invest in bonds, and therefore, your net income will decrease by $25,000 - $50,000 = -$25,000.
Instead, if you invest in bonds and not microwaves, your net income will increase by $50,000 - $25,000 = $25,000.
You should invest in US bonds because you will be able to earn a higher return than if you build and sell microwaves.
The calculation is as follows:alternative 1, build and sell microwave ovens:
initial outlay = $500,000
So,
net cash flow per year = $225,000 - $200,000 = $25,000
now
alternative 2, invest in US securities:
investment = $500,000
net cash flow per year = $500,000 x 10% = $50,000
In the case when you choose to build and sell microwaves, you will not be able to invest in bonds, and therefore, your net income will decrease by $25,000 - $50,000
= -$25,000.
Now
Instead, if you invest in bonds and not microwaves, your net income will increase by $50,000 - $25,000
= $25,000.
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2. A small business makes cakes for parties and weddings. Which two of the following are most likely to be resources it uses directly in production? Select two of the following.
A. Labour
B. Taxes
C. Television adverts
D. Flour
E. Airfreight
Answers
D and A.
The reasoning is because if they are making a cake then they may use flour, and they may have to clean up their mess afterwards.
Select all that apply.
Select all reasons data mining is important to businesses.
It cuts costs.
It identifies long-term goals.
It solves problems.
It increases profits.
Answers
I sole’s problems increase profits
Answer:
a,c,d
Explanation:
which of the following is not one of the six functional areas of business that sits on a foundation of business law?
Answers
Answer:
state and federal taxation
Explanation:
The epicurean society is holding its annual election for president. The three candidates are a, b, and
c. Twenty percent of the voters like upper c the most and upper a the least. Forty percent of the voters like upper a the most and upper c the least. Of the remaining 232 prefer upper b to upper c and upper c to upper a, and 696 prefer upper b to upper a and upper a to upper
c. Write out the preference schedule for this election.
Answers
Answer and Explanation:
Please find answer and explanation attached
explain reasons for NGO's and CBOs to be part of the market environment
Answers
Answer:
explain reasons for NGO's and CBOs to be part of the market environment
Explanation:
explain reasons for NGO's and CBOs to be part of the market environment
Explanation:
NGOs exist for a variety of purposes, usually to further the political or social goals of their members. Examples include improving the state of the natural environment, encouraging the observance of human rights, improving the welfare of the disadvantaged, or representing a corporate agenda.
6. How will a court decide whether it should order Berner to refrain from using the term
air door?
Answers
Air curtains are frequently used to keep flying pests, dust, debris, and wind out of a building. Air curtains form an air barrier between the conditioned interior air and the outside air.
What is the purpose of an air door?An air curtain, also known as an air door, is a machine that creates an air seal by blowing a controlled stream of air across an opening to the other side. This seal separates two environments while allowing for a continuous flow of traffic and unobstructed vision through the opening.
To lock or unlock, simultaneously press and hold the left and right arrows for 5 seconds; the Locked light will illuminate. If the PASScode option is enabled, any attempt to unlock the control will result in the display of PASS followed by a 0000 prompt for a four-digit unlock code.
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How do you calculate a company's net worth?
a) Total up all Assets
b) Subtract total Liabilities from Stockholder's Equity
O c) Subtract Stockholder's Equity from Total Assets
O d) Subtract total Liabilities from total Assets
Answers
To find a companies net worth you subtract total liabilities from total assets
Your welcome…
Description on E-commerce not more than 10 sentences
Answers
What is the least amount of money a student should receive when doing work
study?
о A. $6 an hour
о B. Federal minimum wage
OC. State minimum wage
D. $7 an hour
SUBMIT
Answers
The correct answer is B. Federal minimum wage. The Federal Work-Study program requires that students be paid at least the federal minimum wage, which is currently $7.25 per hour.
Some states have a higher minimum wage rate, so if the state's minimum wage is higher than the federal minimum wage, then the student would need to be paid at the higher state rate.
When there are conflicting minimum wage rates, employers are required to pay the higher rate. It is important to note that some types of workers, such as tipped employees and workers with disabilities, may have a different minimum wage rate under certain circumstances.
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You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $47. Your broker requires you to deposit $17,000.
1. Suppose you sell the stock at a price of $56. What is your return? What would your return have been had you purchased the stock without margin? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
2. What is your return if the stock price is $45 when you sell the stock? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Answers
1) The return without margin would have been the same as the return on margin, which is approximately 19.12%.
2) The return on margin is approximately -4.25%, indicating a loss on the investment.
To calculate the return when selling the stock at $56, we need to consider the initial investment and any associated costs.
The initial investment made on margin is the deposit required by the broker, which in this case is $17,000. However, since the purchase was made on margin, the investor only paid a percentage of the total purchase price. In this scenario, we need to determine the total purchase price.
Total purchase price on margin:
Total purchase price = Shares purchased * Purchase price
Total purchase price = 700 * $47 = $32,900
Return on margin:
Return = (Sale proceeds - Total purchase price) / Total purchase price * 100
Return = ($56 * 700 - $32,900) / $32,900 * 100
Return = ($39,200 - $32,900) / $32,900 * 100
Return = $6,300 / $32,900 * 100
Return ≈ 19.12%
If the stock had been purchased without margin, the return would have been calculated based on the full purchase price, which would be 700 shares * $47 = $32,900. Therefore, the return without margin would have been the same as the return on margin, which is approximately 19.12%.
When selling the stock at $45, we can calculate the return using the same formula as before.
Return on margin:
Return = (Sale proceeds - Total purchase price) / Total purchase price * 100
Return = ($45 * 700 - $32,900) / $32,900 * 100
Return = ($31,500 - $32,900) / $32,900 * 100
Return = -$1,400 / $32,900 * 100
Return ≈ -4.25%
In this case, the return on margin is approximately -4.25%, indicating a loss on the investment. If the stock had been purchased without margin, the return would have been the same since the stock price at the time of sale determines the return, regardless of the margin.
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john has an escalator clause in his labor contract by which his salary automatically increases according to the previous year's inflation rate. if john's salary is $50,000; this year's consumer price index is 120; and the previous year's cpi was 115, what will john's new salary be?
Answers
If John's salary is $50,000; this year's consumer price index is 120; and the previous year's CPI was 115, then John's new salary will be $52,170.
The salary computation of John will be based on the proportionate increase in the levels of Consumer Price Index from the previous year to the current year.
Change in Consumer Price Index = Current CPI / Previous CPI x 100 – 100
Change in Consumer Price Index = 120 / 115 × 100 – 100
Change in Consumer Price Index = 104.34 - 100
Change in Consumer Price Index = 4.34 percent
Therefore, the change in John's salary will be,
Change in John's salary = Current Salary + Change in CPI
Change in John's salary = 50000 + 4.34%
Change in John's salary = 50000 + 2170
Therefore, the new salary of John will be $52,170.
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who do you contact if you have questions about repayment plans?
Answers
Answer:
Contact the Department of Education's (ED) Office of Federal Student Aid (FSA) if you have questions about your loans or payments.
Explanation:
mark me brainliest
Answer:
the Department of Education's (ED) Office of Federal Student Aid (FSA) ***