The expenses, fixed assets, and net working capital of marco development (md) all vary directly with sales. currently, the sales are $6.1 million, total assets are $5.2 million, current liabilities are $1.7 million, and long-term debt is $2.1 million. the projected sales growth is 8 percent. the current profit margin is 6 percent. the firm estimates its dividend payout ratio as 55 percent. by what amount will the firm's long-term debt change next year if the firm retains the same amount of common stock as it currently has?

a. $78,789
b. $81,636
c. $95,009
d. $98,417
e. $102,124

The market demand curve for a popular teen magazine is given by q = 80 - 10p where p is the magazine price in dollars per issue and q is the weekly magazine circulation in units of 10,000. if the circulation is 400,000 per week at the current price, what is the consumer surplus for a teen reader with maximum willingness to pay of $3 per issue?

When a market is in equilibrium, the buyers are those with the willingness to pay and the sellers are those with the costs.

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?