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SpyIntel [72]
2 years ago
14

"lan A has a fixed cost of $10 and a variable cost of $0.05 per minute $0.10 per MB. Plan B has no fixed cost and a variable cos

t of $0.25 per minute $0.20 per MB. What is the point of indifference between the two plans
Business
1 answer:
ivolga24 [154]2 years ago
6 0

Answer:

The indifference point is 50 minutes.

Explanation:

Giving the following information:

A has a fixed cost of $10 and a variable cost of $0.05 per minute $0.10 per MB. Plan B has no fixed cost and a variable cost of $0.25 per minute $0.20 per MB.

First, we need to formulate the cost equation for each of the plans.

Plan A:

Total cost= 10 + 0.05*x

Plan B:

Total cost= 0.25*x

X= minutes

To determine the indifference point, we need to equal both formulas:

10 + 0.05x= 0.25x

10/0.20= x

50=x

The indifference point is 50 minutes.

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It could, as long as it fulfills these two conditions
- The products could generate enough profit without the boost that givenn by other channel flows.
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4 0
2 years ago
Imagine that your friend is the CEO of a company, called Magna Clothes, that manufactures cool new clothing accessories for both
Ivanshal [37]

Answer:

a) & b) are true. c) & d) are false.

Explanation:

WTO is an international (intergovernmental) organisation, supervising international trade between countries.

a) is true. It seeks to establish impartial procedures for resolving trade disputes among its members.

It seeks to reduce remaining trade barriers through multilateral negotiations, b) is true

c) is false. It is headquartered in Geneva, Switzerland (not Belgium)

d) is false. Existence of the WTO has allowed most member countries to replace their local currencies with a universal currency beginning in 2002. It is an international trade organisation, not monetary policy organisation.

5 0
2 years ago
Johnson is appraising two parcels of property. One is leased to the government for use as a post office; the other is leased to
Arada [10]

Answer:

Lower.

Explanation:

The capitalization rate is mainly used in real estate and is a measure of the rate of return on a property, based on the net operating income it is expected to generate.

Johnson in appraising two parcels of property, leased one to the government for use as a post office while the other parcel of property, is leased to a private owner for use as a hardware store. Having the knowledge that the parcels have recently started long-term leases. The capitalization rate of the post office property used by the government as compared to the capitalization rate of the hardware store property used by the private owner will be lower.

The capitalization rate of the post office property would be lower because, real-estate investors will not expect much returns on the investment as it's a less risky investment. The post office is less likely than a hardware store to run out of business or go bankrupt by virtue of being a governmental agency or public company.

Hence, the hardware store will need a higher capitalization rate in comparison with post office property.

4 0
2 years ago
Start period 02 | 01 | 2019 End period 02 | 15 | 2019 Gross Pay $1,837.00 Earnings Taxes Deductions $1,837.00 Federal (8.24%) =
mario62 [17]

Answer:

Net Pay is equal to $1,474.19.

Explanation:

Net is Gross Pay minus taxes deductions. Therefore, Net Pay can be calculated as follows:

<u>Particulars                                                           ($)                    ($)      </u>

Gross Pay                                                                              1,837.00

<u>Taxes Deductions</u>

Federal (8.24% of Gross Pay)                        (151.37)

FICA Medicare (1.45% of Gross Pay)             (26.64)

FICA Social Security (6.20% of Gross Pay)  (113.89)

State - OK (3.86% of Gross Pay)                  <u>  (70.91)  </u>

Total                                                                                     <u>  (362.81) </u>

Net Pay                                                                               <u>  1,474.19  </u>

<u />

Therefore, Net Pay is equal to $1,474.19.

7 0
2 years ago
Vaughn Manufacturing has outstanding 596000 shares of $2 par common stock and 119000 shares of no-par 6% preferred stock with a
natima [27]

Answer: $107,900

Explanation:

Cumulative Preferred Shares refer to shares that a company has to pay dividends eventually. This means that if they are unable to pay for some years, they are to accrue that payment until they are able to.

There are 119000 shares of no-par 6% preferred stock with a stated value of $5.

That means preferred shares are liable to the following amount of dividends,

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= $35,700

Preferred Shares have not being paid for the past 2 years and need to be paid in the current year as well. That means 3 payments,

= 35,700 * 3

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Preferred Shares are to be paid $107,100 out of the $215,000 with the rest going to common shares.

Amount going to Common Shares is,

= 215,000 - 107,100

= $107,900

Common Stockholders are to receive $107,900

7 0
2 years ago
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