.If MR > MC, economic profit increase if output increases True (A False (B
Q: Which one of the following statement is true about profit maximization? a It foc US or Ountina
A: 1. Profit maximization is the concept that focuses on maximising the profits. This concept ignores…
Q: Profit maximisation is a Select one: a. Both of these b. Short term concept c. Long term concept…
A: Profit maximisation-The main aim of any business is to maximise profits of the firm. In financial…
Q: Do you agree? Why? (a) High levels of working capital decrease risk and decrease return. (b) High…
A: Working capital refers to the measure of the short-term financial health of the company that…
Q: Explain the differences and similarities between Return on Investment (ROI) and Residual Income (RI)
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: The formula for ROI is simply the gain from the project minus cost of the project divided by the…
A: Return on investment is the actual gain on the project represented as a percentage.
Q: Economic Profit?
A: Economic profit is different from the accounting profit earned, accounting profit is calculated at…
Q: Which of the following describes the behavior of the fixed cost per unit?
A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…
Q: Is it true or false that for a given profit margin and turnover ratio, a greater leverage ratio will…
A: According to DUPONT Analysis, ROE is the function of three ratio. ROE=net profit margin×asset…
Q: Which of the following methods does not consider the investment’s profitability? a. ARR b. Payback…
A:
Q: what are the incremental earnings (net income) associated with the new machine?
A: Earnings: It is the income for the company after taking into account expenses and depreciation and…
Q: When selling price is constant and variable costs increases. What will be the effect to the net…
A: In the given example, it is assume that selling price is constant in both the cases and variable…
Q: The internal rate of return for Company A is close to
A: IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a…
Q: 4. Which of the following is the best definition of sustainable income? a Sustainable income is a…
A: Income statement: The income statement is one of the three primary financial statements used to…
Q: market value
A: Market value refers to the estimated worth of asset, which is based on the willingness of the buyer…
Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…
A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…
Q: What is a yield curve? What does it mean when the yield curve is inverted?
A: Yield curve tells the relationship between the short term interest rates and long term interest…
Q: Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR)…
A: Net present value (NPV) is the contrast between the present value of money inflows over some…
Q: In the Romer model, output increases in the and decreases in the
A: Romer model states that the savings rate would be increased and there would be a decrease in the…
Q: When npv is negative, the discount rate is greater than the actual return on investment. A.…
A: Net present value is the method used in capital budgeting to analyse various investments, projects,…
Q: In all respects, Company A and Company B are identical except that Company A’s costs are mostly…
A:
Q: What would be the expected change in profit?
A: "Contribution Margin: The Contribution Margin is also can be treated on a gross or per unit basis.…
Q: operating income will increase by
A: Due to increase in sales, only variable expenses would increase. There would be no change in fixed…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…
A: Fixed cost in total remains constant. They will not change by change in production.
Q: If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in…
A: Lets understand the basics. Variable cost ratio is a ratio which indicates the variable cost in…
Q: What does it mean when ROI has decreased even though net income hasincreased?
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: Explain the difference between return of investment versus return on investment.
A: The ratio analysis helps to analyze the financial statements of the business.
Q: In a profit diagram, the safety margin can either be expressed in kronor or some form of volume.…
A: Margin of safety is a financial metric which represents the number of units beyond the break-even…
Q: Yes, because operating income increases.
A: It is pertinent to note that higher the contribution higher the operating income since fixed cost…
Q: What are some reasons that net PP&E might grow proportionally tosales, and what are some reasons…
A: Property, plant & equipment are company's long term assets important for the company's…
Q: Identify the root of the value maximization principle: O a Accounting O b. Statistics O. Economics O…
A: Answer: Concept: Value maximization principle involves concept of increasing value of the market.
Q: What ROI will equate the PV of Inflows and the PV of outflows? a. Internal rate of return (IRR) b.…
A: Option b is incorrect because cost of capital means the cost that is incurred by the organization on…
Q: When using the benefit-cost ratio measure of worth (B/C), what benchmark is the calculated ratio…
A: Benefit Cost Ratio :— Benefit Cost Ratio are mostly Used in Capital Budgeting to analyse the Overall…
Q: What is the relationship between NPV and profitability index (PI)?
A: The concept of net present value is used to decide whether to invest in an investment or not. It is…
Q: The target rate of return on investment the percentage used to markup the cost to an acceptable…
A: Target rate return on investment is required profit on investment made and markup the cost is…
Q: Which of the following option shows the rate at which company is earning profit? Select one: a. All…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: (b) Find the break even point. (c) Find the maximum profit. (d) Find the revenue that maximizes…
A: Break-even point is the point at which company neither earns profits nor incurs losses. Break-even…
Q: Suppose that there is a constant technological progress (A) and population growth (n) in a sample…
A: The technical process is technology's work technique, and it consists of an organized series of…
Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…
A: In the question we are required to identify the effect of increase in activity on Total Variable…
Q: Which of the following statements about CVP analysis is false O a. Operating income calculations in…
A: Cost volume profit analysis is the analysis in which the relationship between cost, volume and…
Q: An increase in the interest rate will cause A an increase in planned investment and an increase in…
A: Interest Rate: An interest rate is the amount of money that a lender charges a borrower in exchange…
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- R (X) = 55x and C (x) = 30x + 250 for total revenue and total cost functions a-) profit function pi (x) for firms and b-) Find the breakeven point.Given the following information, what is the desired profit margin? D/E = 2current profit margin = 10%R = 0.6capital intensity ratio = 2desired sustainable growth rate = 15%Q24. The level of detail in a model should not depend on the application. For example, for regular work you may forecast depreciation using a growth rate, a percentage of sales, or PP&E. Choices: True or False
- Refer to the following payoff table (values are profit): State of Nature Alternative S1 S2 A1 75 −40 A2 0 100 Prior Probability 0.6 0.4 What is the expected payoff of the decision strategy (i.e. using the EMV/EP criterion)?Compute the expected rate of return on investment i given the followinginformation: Rf = 8%; E(RM) = 14%; βi = 1.0.b. Recalculate the required rate of return assuming βi is 1.8.Explan unrealized profits as per IFRS10?
- Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The profit-maximizing price: P=494 OMR. Then the Profit-maximizing quantity is (............) Units. (write only the number) Answer:Calculate Computron’s return on invested capital (ROIC). Computron has a 10% cost of capital (WACC). What caused the decline in the ROIC? Was it due to operating profitability or capital utilization? Do you think Computron’s growth added value?Which term is used to represent the sales level that results in a project's net income exactly equalling zero? Group of answer choices Cash breakeven Operational breakeven Present value breakeven Financial breakeven Accounting profit breakeven
- Ma4. Hello, Please analyze this firm's performance if the revenue is increasing or decreasing compared to the industry average or if the profitability is stable or rising. Please include if the company needs to create or capture value or if they are creating or capturing value.38 If the investment turnover increased by 30% and ROS decreased by 20%, the Residual Income woulda. Increase by 4%b. Increase by 6%c. Increase by 30%d. None of these18. The degree of operating leverage used in Cost-Volume-Profit (CVP) analysis is highest for firms with high Multiple Choice a)prime costs b)sunk costs c)conversion costs d)fixed costs e)opportunity costs