The P/E ratio of Reno Revolvers is 16 times.
Given,
Reno Revolvers has an EPS of $1.50
Free cash flow per share = $3.00
Price/free cash flow ratio = 8.0
P/E ratio = ?
The formula which is used to calculate the Price / Earning ratio (P/E ratio) is given below:
Price / Earnings ratio (P/E ratio) = (Market price per share) ÷ (Earning per share)
Here,
Earning per share = $1.50
The market price per share is
= Cash flow per share × price / cash flow ratio
= $3 × 8
= $24
Now placing this value into the formula above
Thus, the price earning ratio is
= $24 ÷ $1.50
= 16 times
Hence, the P/E ratio of Reno Revolvers is 16 times.
To learn more about P/E ratio here:
https://brainly.com/question/17277436
#SPJ4
Financial data for Joel de Paris, Incorporated, for last year follow: Ine company paid dividends of $301.080 last year. The "Investment in Buisson. S.A." on the balance sheet represents an Investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company's margin, turnover, and return on investment (ROl) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal pleces.) 3. What was the company's residual income last vear?
Given data, Dividends paid = $301,080Minimum required rate of return = 15%Now, we need to compute the following: Average operating assets Margin Turnover Return on investment (ROI)Residual income1. Compute the company's average operating assets for last year.
Average Operating Assets = (Beginning Operating Assets + Ending Operating Assets) / 2Here, we do not have the beginning and ending values of operating assets. Hence, we can not calculate the average operating assets.2. Compute the company's margin, turnover, and return on investment (ROI) for last year.
To calculate the Net Income, we will use Residual Income formula. Hence, we will leave Margin, Turnover and ROI for now. Residual Income = Net Income - (Minimum Required Rate of Return × Average Operating Assets) Net Income = Dividends Paid = $301,080Average Operating Assets = (Beginning Operating Assets + Ending Operating Assets) / 2 = ?Residual Income = $301,080 - (0.15 × ?) = $301,080 - 0.15x.
To know more about company visit:
https://brainly.com/question/10749354
#SPJ11
If you were developing a product (like a web browser) for a market with significant barriers to entry, how would you try to get your product into the market successfully?
Answer:
by making it
Explanation:
because ill make a deal with the owner of the market and if he/she says yes i basicly talked buissness
James Rome, a California CPA practicing in California, is a sole practitioner who has his office in San Diego. James provides various bookkeeping, accounting, payroll, and tax services to
about 50 small business clients. Mary is an assistant to James and is the only employee of the firm. Which of the following is a proper form of notice to his clients regarding James' status as a Certified Public Accountant in the State of California?
A) Displaying the certificate of licensure issued by the Board in the office or the public area of the premises where the licensee provides the licensed service.
B) Any method of written notice, including a written notice that is electronically transmitted or a written notice posted at an Internet Website.
C) Providing a statement to each client to be signed and dated by the client and retained in that person's records that states the client understands the person is licensed by the California Board ofAccountancy.
D) All of the above.
E) Both a. and c. but not b.
The proper form of notice to clients regarding his status as a Certified Public Accountant in the State of California is D. All of the above.
How is a Certified Public Accountant in the State of California to notify clients?In the state of California, a Certified Public Accountant has several ways that they are allowed to notify their clients of their status and one of them is that they are to display the certificate of licensure issued by the Board of Accountants in California in their office or in a public place.
They can also use a handwritten notice and handwritten notices on their website or transmitted electronically also suffice. The clients can also sign and date a statement from James and in these records, the client agrees that they understand the licensing of the James by the California Board of Accountancy.
Find out more on Certified Public Accountants at https://brainly.com/question/19066091
#SPJ1
If you are a Japanese producer who sells products in the US, you want a foreign exchange future without going through the futures market. So, you borrow money in dollars with an interest rate of 5% and immediately convert it to yen at a rate of 1 dollar to 100 yen. Then you put the money in a Japanese interest-bearing account with an interest rate of 10%. What is the forward exchange rate in this case?
Answer:
104.76 yen per dollar
Explanation:
the forward rate = spot rate x [(1 + foreign interest rate) / (1 + domestic interest rate)] = 100 yen x [(1 + 10%) / (1 + 5%)] = 100 yen x (1.1 / 1.05) = 104.76 yen per dollar
Since the interest rate in Japan is higher than the interest rate in the US, investors will start to purchase more yens in order to gain higher interest rates, which will eventually appreciate the yen against the dollar until both interest rates match.
9. When paraphrasing, which of the following must a student do:
1. Introduce the source before the paraphrase.
2. Must make significant changes to the phrasing, sentence structure, and word choice.
3. Provide parenthetical documentation of the page number after the paraphrase.
4. Put a bibliographic citation in the references section at the end of the paper
5. They are all necessary.
6. None of these are necessary.
Answer:
5. They are all neccessary
When paraphrasing, first introduce the source before the paraphrase then make significant changes to the phrasing, sentence structure, and word choice then provide parenthetical documentation of the page number after the paraphrase after that put a bibliographic citation in the references section at the end of the paper. Option (5) is correct. all steps are necessary.
What do you mean by Documentation?Any communicable material used to describe, clarify, or provide instructions for certain characteristics of a thing, a system, or a procedure, such as its components, assembly, installation, maintenance, and use, is considered documentation.
When you paraphrase, you give someone else's thoughts your own style while maintaining the original meaning. Summarizing is the process of distilling the major points from a lengthy portion of someone else's writing into your own words.
Therefore, Option (5) is correct. All steps are necessary.
Learn more about Documentation, here;
https://brainly.com/question/27396650
#SPJ2
assume marleen adds apple, inc. stock to her portfolio, and apple, inc. stock is less than perfectly positively correlated with the portfolio (correlation coefficient < 1). apple, inc. has the same standard deviation as the portfolio. what will happen to the standard deviation of the portfolio after she adds apple, inc.? (hint: consider the two-asset standard deviation formula and consider the portfolio as asset a and apple, inc. as asset b). a. it will increase. b. it will remain the same. c. it will decrease. d. it may increase or decrease, depending on the weightings of the portfolio holdings.
The answer is d. The impact of adding a stock to a portfolio on the portfolio's standard deviation depends on the correlation coefficient between the stock and the portfolio and the weightings of the portfolio holdings. If the correlation coefficient is less than 1 and the weightings are such that the stock and the portfolio are not perfectly positively correlated, then adding the stock can either increase or decrease the standard deviation of the portfolio.
When Marleen adds Apple, Inc. stock to her portfolio, the standard deviation of the portfolio may increase or decrease depending on the correlation coefficient between the portfolio and the Apple stock. If the correlation coefficient is negative or low, then the addition of Apple stock will reduce the overall risk of the portfolio, resulting in a lower standard deviation. On the other hand, if the correlation coefficient is positive, then the addition of Apple stock will increase the overall risk of the portfolio, resulting in a higher standard deviation. However, if the weightings of the portfolio holdings are changed after the addition of Apple stock, the standard deviation may increase or decrease accordingly.
Learn more about stocks:
https://brainly.com/question/29992015
#SPJ4
what happens if my tax return is rejected after the deadline?
Explain the significance of profit equaling zero when calculating a break-even point
Answer:
profit equal zero defines the break-even point
Explanation:
By definition, the break-even point is the point where profit is equal to zero. The significance is that zero profit defines the break-even point.
Justin’s Maple Almond Butter + Pretzels is sold in a single-serving molded plastic package designed to keep the almond butter and pretzels fresh. Additionally, the packaging is designed in a way such that pretzels can be easily and neatly dipped into the almond butter during consumption. This is an example of the ______ of packaging.
Answer:
functional benefit
Explanation:
It is correct to say that Justin's Maple product packaging is a functional packaging, as it provides added benefits to the organization's products. From the information in the question, we can see the functional attributes of the packaging, which are designed to keep almond butter and pretzels fresh, in addition to providing a greater experience while consuming the product.
Therefore, functional packaging is one that increases the value of the customer's perception of the aggregate and functional benefits of packaging. This is a strategy of generating value for consumers and differentiating it from the competition, increasing the organization's competitiveness and its positioning in the market.
a property sold for $600,000 in michigan. what is the total transfer tax (state plus county) for this transaction?
The total transfer tax for a property sold for $600,000 in Wayne County, Michigan is $5,160.
To determine the total transfer tax for a property sold for $600,000 in Michigan, we must first determine the state transfer tax rate and the county transfer tax rate. In Michigan, the state transfer tax rate is $3.75 per $500 of the sale price, and the county transfer tax rate varies by county.
Given that a property sold for $600,000 in Michigan, we must determine the total transfer tax for this transaction.
The state transfer tax rate in Michigan is $3.75 per $500 of the sale price. To calculate the state transfer tax for a property sold for $600,000, we can use the following formula:
State Transfer Tax = (Sale Price ÷ $500) x $3.75
State Transfer Tax = ($600,000 ÷ $500) x $3.75
State Transfer Tax = 1,200 x $3.75
State Transfer Tax = $4,500
Therefore, the state transfer tax for this transaction is $4,500.
The county transfer tax rate in Michigan varies by county. For example, in Wayne County, the county transfer tax rate is $0.55 per $500 of the sale price. To calculate the county transfer tax for a property sold for $600,000 in Wayne County, we can use the following formula:
County Transfer Tax = (Sale Price ÷ $500) x County Transfer Tax Rate
County Transfer Tax = ($600,000 ÷ $500) x $0.55
County Transfer Tax = 1,200 x $0.55
County Transfer Tax = $660
Therefore, the county transfer tax for this transaction in Wayne County is $660.
To determine the total transfer tax for this transaction, we add the state transfer tax and county transfer tax:
Total Transfer Tax = State Transfer Tax + County Transfer Tax
Total Transfer Tax = $4,500 + $660
Total Transfer Tax = $5,160
For similar questions on "Transfer Tax for a Property" :
https://brainly.com/question/28240338
#SPJ11
Which of the following tasks would be completed by a radio announcer
Answer:
Research questions for interviewing guests.
Explanation:
A Radio Announcer has several responsibilities among which could be research questions for interviewing guests, and be the voice of the show, he would have to do troubleshooting, nor train customers, he shouldn´t need to install telecommunication equipment, so the only responsibility that the radio announcer would have from the options would be D) Research questions for interviewing guests.
Which is broadly defined as the effect of politics on markets?.
The broadly defined term for the effect of politics on markets is political risk.
Political risk refers to the uncertainty and potential negative impact on financial, economic, or business operations caused by political decisions or events.
Political risk can arise from a wide range of factors, such as changes in government policies, regulations, trade agreements, social unrest, wars, or natural disasters. These factors can impact financial markets, investment decisions, business operations, and economic growth.
Investors and businesses need to take political risk into account when making decisions and planning for the future. Political risk can affect currency exchange rates, interest rates, stock prices, and other financial indicators. For example, a sudden change in government policies or regulations could lead to a drop in stock prices or increase the cost of doing business.
Overall, political risk is an important factor that investors and businesses need to consider in order to make informed decisions and manage potential risks to their financial and economic interests.
To learn more about markets click on,
https://brainly.com/question/31783083
#SPJ4
How many days does the pay stub cover?
Answer:
Pay stubs are usually an extent of 30 days which is a month.
Jamie is researching places to live after graduating college he asked you I keep coming across as phrase cost-of-living I’ve never heard of it before do you know what it means which of the following definitions would you choose to explain to Jamie about cost-of-living means
Answer:
The cost of living refers to the prices of goods and services needed to sustain an average level standard of living in an area
Explanation:
The cost of living refers to the cost of keeping up with a given standard of living. It is the amount Jamie would need to keep up with basic expenses such as food, housing, clothing and medical care. Cost of living compares the expense between living in two different areas. Jamie's cost of living is tied to his wages and it can be measured using what is called purchasing power parity.
What does it mean to be in business? And what are the benefits of having your own business?
(Take your time please and thank you)
which of the following functions can a corporation do on its own behalf?
A corporation can perform various functions on its own behalf, such as entering into contracts, buying and selling assets, hiring and firing employees, and issuing shares. These functions enable a corporation to operate independently and fulfill its objectives.
A corporation can perform a wide range of functions on its own behalf, such as entering into contracts, acquiring assets, raising capital, issuing stocks, paying taxes, and engaging in legal actions. However, it cannot perform certain functions that are reserved for natural persons, such as voting or running for public office. Additionally, a corporation must operate within the legal and regulatory framework established by the government and abide by the rules and regulations that govern its industry.
To learn more about corporation, visit:
https://brainly.com/question/29806050
#SPJ11
The correct answer is: e) All of the above. A corporation has the ability to perform all of the listed functions on its own behalf. It can enter into contracts with other parties, raise capital by issuing stocks and bonds, make strategic business decisions to drive its operations, and hire employees to fulfill its staffing needs.
Additionally, it has the ability to raise capital through issuing stocks and bonds, enabling it to secure funds from investors and the public for business operations and expansion. Moreover, a corporation possesses the autonomy to make strategic business decisions, including those related to investments, mergers, acquisitions, and market expansion. Lastly, it can hire employees to build its workforce, ensuring the necessary skills and expertise are available for the company's functioning. In summary, a corporation can independently perform all of these functions, allowing for its effective operation and growth.
Learn more about corporation
https://brainly.com/question/30166111
#SPJ4
Full Question ;
Which of the following functions can a corporation do on its own behalf?
a) Enter into contracts
b) Raise capital through issuing stocks and bonds
c) Make strategic business decisions
d) Hire employees
e) All of the above
You may need to use the appropriate appendix table to answer this question.
Given that z is a standard normal random variable, find z for each situation. (Round your answers to two decimal places.)
(a) The area to the left of z is 0.9750.
(b) The area between 0 and z is 0.4750.
(c) The area to the left of z is 0.7486.
(d) The area to the right of z is 0.1210.
(e) The area to the left of z is 0.7088.
(f) The area to the right of z is 0.2912.
To find the values of z for each situation, we can use a standard normal distribution table or a calculator with a built-in function for the standard normal distribution. Here are the calculations:
(a) The area to the left of z is 0.9750.
Using a standard normal distribution table or a calculator, we find that z ≈ 1.96.
(b) The area between 0 and z is 0.4750.
To find the z-value for an area of 0.4750, we need to find the z-value for half of this area. Half of 0.4750 is 0.2375. Using a standard normal distribution table or a calculator, we find that z ≈ 0.73.
(c) The area to the left of z is 0.7486.
Using a standard normal distribution table or a calculator, we find that z ≈ 0.69.
(d) The area to the right of z is 0.1210.
Since the area to the right is given, we need to find the z-values for the area to the left of 1 - 0.1210 = 0.8790. Using a standard normal distribution table or a calculator, we find that z ≈ 1.17.
(e) The area to the left of z is 0.7088.
Using a standard normal distribution table or a calculator, we find that z ≈ 0.54.
(f) The area to the right of z is 0.2912.
Since the area to the right is given, we need to find the z-value for the area to the left of 1 - 0.2912 = 0.7088. Using a standard normal distribution table or a calculator, we find that z ≈ -0.54.
Rounding the values to two decimal places, the solutions are:
(a) z ≈ 1.96
(b) z ≈ 0.73
(c) z ≈ 0.69
(d) z ≈ 1.17
(e) z ≈ 0.54
(f) z ≈ -0.54
Learn more about z-values here:
brainly.com/question/32878964
#SPJ11
Parts (a) and (b) of this problem are looking at the Location Quotient technique that is commonly used by real estate market analysts to see how concentrated a particular occupation, industry, demographic group, etc. is in a specific region as compared to a larger geographic area, such as the entire nation. For both parts (a) and (b), show and explain your calculations, and show the numbers that you plugged in to do your calculations. (Hint: Read Chapter 3 of the textbook used in this course, as it will provide insight to location quotients and various NAICS codes and where to find existing location quotients using the (BLS) website. How does this compare to your calculations?
When comparing calculated location quotients with existing location quotients available from the BLS website, the results may vary due to different time periods, data sources, and methodology.
The location quotient (LQ) technique is used to measure the concentration of a specific occupation, industry, or demographic group in a particular region as compared to a larger geographic area, such as the entire nation.
It is calculated as the ratio of the proportion of employment in a particular region for a specific industry or occupation to the proportion of employment in that industry or occupation for the larger geographic area.
The formula for calculating the location quotient is:
LQ = (Employment in region for a specific industry or occupation / Total employment in the region) / (Employment in the larger geographic area for the same industry or occupation / Total employment in the larger geographic area)
A location quotient of 1 indicates that the industry or occupation has the same level of concentration in the region as in the larger geographic area. A location quotient greater than 1 indicates a higher concentration in the region, while a location quotient less than 1 indicates a lower concentration in the region.
To calculate the location quotient, one needs to know the employment figures for the specific industry or occupation for both the region and the larger geographic area. These figures can be obtained from government agencies like the Bureau of Labor Statistics (BLS).
When comparing calculated location quotients with existing location quotients available from the BLS website, the results may vary due to different time periods, data sources, and methodology. However, the general interpretation of the location quotient remains the same.
Learn more about location quotients: brainly.com/question/13716346
#SPJ11
a(n) _____ is any instance where the product or service fails to meet customer requirements.
A(n) defect is any instance where the product or service fails to meet customer requirements.
There may be multiple opportunities for a defect due to the fact that the majority of products or services have multiple customer requirements.
What is the term used to describe a product's or service's performance?
Unwavering quality is the capacity of an item or administration to proceed true to form over the long haul.
Which four kinds of quality control are there?Process control, control charts, acceptance sampling, and product quality control are the four types of quality control.
What are the three types of quality?It is helpful to keep in mind that there are three primary types of quality measures that should be taken into consideration when developing a quality strategy: measures of the process, the results, and the structure.
To learn more about product quality control here:
https://brainly.com/question/29745155
#SPJ4
a program that combines sick leave, vacations, and holidays into a total number of hours or days that employees can take off with pay is called a/an ____ plan.
A program that combines sick leave, vacations, and holidays into a total number of hours or days that employees can take off with pay is called a "Paid Time Off (PTO)" plan.
A Paid Time Off (PTO) plan is an employee benefit that provides a pool of days or hours that workers can use for various purposes, such as personal illness, vacations, or holidays. This type of plan allows employees more flexibility in managing their time off, as they can choose how and when to use their allotted PTO. Employers typically allocate a certain number of PTO hours or days per year, and employees may be able to carry over unused PTO to the following year, within certain limits set by the company's policies.
In summary, a PTO plan is a convenient and flexible way for employees to manage their paid time off, combining sick leave, vacations, and holidays into a single pool of hours or days.
To know more about Sick leave visit:
brainly.com/question/14530985
#SPJ11
What is the goal of materials handling? a. Minimize length of time product is held in storage b. Minimize time spent sorting delivered products c. Minimize the time spent coding and tagging products d. Minimize the number of times a product is handled e. Minimize the number of times a product is transported
Answer:
d. Minimize the number of times a product is handled
Explanation:
Material handling is the process by which products are passed from different stages of production and delivery before getting to the consumer.
Since material handling is an essential activity in production businesses plan to reduce cost on this activity.
The best way to reduce handling cost is to reduce the number of time a product needs to be handled.
That is reducing to the barest minimum the touch points in process like sorting, moving, preparing, and storing products
Why is it not appropriate to use "number of units" as the allocation base when calculating the POHR rate? A. Each unit is unique and can use varying amounts of the true cost driver. B. It is impossible to estimate the number of units the company will produce throughout the year. C. Each job can have different number of units in the job. D. It is appropriate to use "number of units" as the allocation base when calculating the POHR rate. E. The formula to allocate MOH to a job does not include "number of units."
It is not appropriate to use "number of units" as the allocation base when calculating the POHR rate because A) each unit is unique and can use varying amounts of the true cost driver.
It is not appropriate to use "number of units" as the allocation base when calculating the POHR (Predetermined Overhead Rate) rate because each unit produced can have different production costs depending on its complexity, size, and other unique features.
Therefore, using the number of units as the allocation base would result in inaccurate cost allocations. Instead, a true cost driver that reflects the actual overhead costs incurred during production, such as machine hours or direct labor hours, should be used to calculate the POHR rate.
By doing so, the allocated overhead cost will more accurately reflect the actual costs associated with producing a particular product or job.
For more questions like POHR rate click the link below:
https://brainly.com/question/30973384
#SPJ11
6. Ms. Tint of New York City recently sued Mr. Bloom, also of New York
City. She claimed that he had run into and injured her while he was
jogging. She asked for $50,000 in damages. When she filed her suit in
federal district court, Mr. Bloom's attorney immediately objected on two
grounds. What were they?
in general, as a source of capital a diversified firm has ________ information about a business that it owns compared to external sources of capital.
In general, as a source of capital, a diversified firm has more information about a business that it owns compared to external sources of capital.
A diversified firm, by definition, has holdings in various industries. As a result, it will have access to a wealth of knowledge and resources. Because of their knowledge of the company, diversified businesses can make more informed decisions when providing capital to one of their holdings. Because of their expertise and access to a wide range of information, they may be more willing to finance riskier initiatives or ventures that outside sources of capital may be hesitant to support. As a result, these companies have more extensive financial resources available to them, which can be used to invest in their business's growth. In conclusion, in general, as a source of capital, a diversified firm has more information about a business that it owns compared to external sources of capital.
To learn more about capital, visit:
https://brainly.com/question/29608710
#SPJ11
9) Which is a risk of being a stockholder?
A) may not get an increase in the amount of one's investment
B) can increase investment if the price of one's stock goes up
C) might receive dividends when the company makes a profit
D) able to vote for members of the board of directors
Answer: A.
Explanation:
The answer to this problem is A. The answer is A because B, C, and D are all positive parts of being a stockholder whereas A is negative.
A) may not get an increase in the amount of one's investment is a risk of being a stockholder.
Stockholders or shareholders are investors who own a portion of a company's equity, represented by shares of stock. While being a stockholder comes with potential benefits such as capital gains, dividends, and voting rights, it also carries risks.
One of the most significant risks of being a stockholder is that the value of the stock can decrease, and the stockholder may lose some or all of their investment. This can happen due to a variety of factors, such as changes in the market, the company's financial performance, or global events that impact the economy.
Therefore, A) may not get an increase in the amount of one's investment is the risk of being a stockholder.
Stocks are generally considered a higher risk because:
a) Their value varies over time
b) They are not covered by FDIC
c) Rate of returns are not guaranteed
d) All the above
Which of the following is not an example of appropriate business etiquette?
Greet everyone cordially, warmly, professionally, and with eye contact.
Dress appropriately and professionally and practice good hygiene.
Arrive at appointments within fifteen minutes of the scheduled time.
Pay attention to the person to whom you are speaking and learn their name.
Answer: Arriving at appointments within fifteen minutes of the scheduled time. This is not an example of appropriate business etiquette as it suggests arriving late or not on time. A person should arrive on time or a few minutes early for a business appointment.
The sale or transfer of accounts receivable to raise funds is called a. discounting. b. collateralizing. c. pledging. d. factoring
The sale or transfer of accounts receivable to raise funds is called factoring
Option D is correct.
Factoring is the sale or transfer of accounts receivable to a third party (the factor) at a discount, in order to raise funds for the business. The factor then assumes responsibility for collecting the payments from the customers who owe the receivables.
Factoring allows a business to access cash quickly, without having to wait for customers to pay their invoices. It can also help to manage credit risk, as the factor assumes the risk of non-payment by the customers.
To know more about funds here
https://brainly.com/question/4521829
#SPJ4
The correct answer is d. factoring. Factoring is the process of selling or transferring accounts receivable to a third party, known as a factor, in exchange for immediate funds.
The factor then collects payment from the debtor on behalf of the original creditor. This is often done to improve cash flow or to raise funds for business operations.The sale or transfer of accounts receivable to raise funds is called d. factoring. In factoring, a business sells its accounts receivable to a third party, known as a factor, who provides immediate cash to the business. This helps the business improve its cash flow without waiting for the customers to pay their outstanding invoices.The correct answer is d. factoring.
For more such questions on selling
https://brainly.com/question/7304387
#SPJ11
For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price.
A) the number of jackets to be produced to maximize profit is 35 (the point above the intersection of the Marginal Cost (MC) and the Average Total Cost (ATC).
What is the Average Total Cost?Average Total Cost (AVC) is computed by dividing the total quantity produced by the total cost used in producing it.
B) The firm will be Indifferent at the point where MC = ATC because at least, it is able to cover sunk costs. At the point where MC = AVC however, it will most likely shut down because it is now incurring losses. Revenue is no longer sufficient at this point to cover Average Total Costs, how much more Average Variable Cost.
C) with regards to profits or losses:
At Price A (where Price is above the intersection between MC and ATC), the company will make a profit.At point B (where MC = ATC), the company will break even.At point C (where the MC = AVC), the company will make a loss.See the link below for more about Average Total Costs:
https://brainly.com/question/25799822
Joan is the proprietor of a manufacturing company. She purchased a machine worth $1,000 for the business on credit. How will this transaction affect the accounting equation? A. Assets ↑ (1,000) = Liabilities↑ (1,000) + Owners’ Equity B. Assets = Liabilities ↑ (1,000) + Owners’ Equity ↓ (1,000) C. Assets ↑ (1,000) = Liabilities + Owners’ Equity ↓ (1,000) D. Assets = Liabilities ↑ (1,000) + Owners’ Equity ↑ (1,000)
The effect of the purchase of the machine by Joan, on the accounting equation, is A. Assets ↑ (1,000) = Liabilities↑ (1,000) + Owners’ Equity
How is the accounting equation affected ?The accounting equation is:
Assets = Liabilities + Owner's equity
When Joan purchased a machine, this would go to the assets as machinery are fixed assets. As the assets increase, there would need to be a source of this increase.
In this case it is liabilities as Joan bought the machine on credit which means the company now owes money for the purchase of the machinery.
Find out more on the accounting equation at https://brainly.com/question/24401217
#SPJ1