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Rina8888 [55]
2 years ago
6

William installs custom sound systems in cars. If he installs seven systems per day, his total costs are $300. If he installs ei

ght systems per day, his total costs are $400. William will install eight sound systems per day only if the eighth customer is willing to pay at least:_________.A. $400. B. $300 C. $50. D. $100.
Business
1 answer:
Margarita [4]2 years ago
5 0

Answer:

D. $100

Explanation:

Given: William install 7 system per day at the cost of $300.

           William install 8 system per day at the total cost of $400.

Remember, If the marginal cost curve is upward-sloping, this means that as output increase, marginal costs will also increase.

Marginal cost is an additional cost incurred in producing additional unit of output.

Now, finding additional payment that eighth customer has to pay.

Change in marginal cost= Cost\ incurred\ in\ installing\ 8\ system - cost\ incurred\ in\ installing\ 7\ system

⇒ Change in marginal cost=  \$400-\$300

∴  Change in marginal cost= \$ 100

Hence, there is an increase in marginal cost by $100 as output increases, therefore, William will install eight sound systems per day only if the eighth customer is willing to pay at least $100.

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<span>Lacoste is widely known for its cotton knit shirts. it is perceived to be of superior quality, garners a certain status among its users, and therefore command a premium price. Lacoste therefore has brand protection from competition and price competition.</span>
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2 years ago
"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o
JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

Download docx
7 0
2 years ago
A company under IFRS standards decides to include interest paid in the Financing Section of their Statement of Cash Flows. How w
Mariulka [41]

The company under IFRS will have lower cash flow in the financing section and higher cash flow in the operating section than the company under US GAAP.

Explanation:

Interest payments are a capital outflow and are viewed as a part of the Cash Flow Statement under US GAAP. The Cash Flow from transactions under IFRS is higher than that under the US GAAP if it is presented in the finance segment of IFRS.

As, on the other hand, the cash outflow for the company is smaller under IFRS than the US GAAP, if interest payments is included in the funding segment of IFRS.

The company under US GAAP would be required to include interest paid in the operating section, which lowers cash flows for that section

3 0
2 years ago
The wages of a timekeeper in the factory would be classified as
nata0808 [166]
A wage is a monetary compensation paid to a worker or an employee for the work done or service provide. In a firm or a factory  there are two types of labor namely direct labor and indirect labor. Direct labor are the workers on the production line whose efforts directly produce what the company manufactures while indirect labor are all the other workers such as the watchman or security guard. In this case, the wages of a timekeeper would be classified as indirect labor.
7 0
2 years ago
Rogoff Co.'s 15-year bonds have an annual coupon rate of 9.5%. Each bond has face value of $1,000 and makes semiannual interest
meriva

Answer:

maximum sum of $891.00

Explanation:

given data    

Face Value = $1,000

Annual Coupon Rate = 9.50%

Time to Maturity = 15 years

yield to maturity = 11%

to find out

maximum price you should be willing to pay for the bond

solution

we know that Semiannual Coupon Rate will be  = 4.75%  

so semiannual Coupon will be = Semiannual Coupon Rate ×  Face Value

semiannual Coupon = 4.75% × $1,000

Semiannual Coupon = $47.50

and Semiannual Period will be for 15 year  = 30

and Semiannual yield to maturity will be here YTM = 5.50%

so

Current Price  will be here

Current Price = Semiannual Coupon × \frac{1-(\frac{1}{1+r})^t}{r} + \frac{faevalue}{(1+r)^t}     ...................1

put here value

Current Price = $47.50 × \frac{1-(\frac{1}{1.055})^{30}}{0.055} + \frac{}{1.055^{30}}

Current Price = $891.00

so pay a maximum sum of $891.00

6 0
2 years ago
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