subject
Business, 08.01.2020 22:31 manuellopez1981

Tp3.
lo 3.3as a manager, you have to choose between two options for new production equipment. machine a will increase fixed costs by a substantial margin but will produce greater sales volume at the current price. machine b will only slightly increase fixed costs but will produce considerable savings on variable cost per unit. no additional sales are anticipated if machine b is selected. what are the relative merits of both machines, and how could you go about analyzing which machine is the better investment for the company in terms of both net operating income and break-even?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 19:50
The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.
Answers: 2
question
Business, 22.06.2019 20:10
Your sister is thinking about starting a new business. the company would require $375,000 of assets, and it would be financed entirely with common stock. she will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an roe of 13.5%. how much net income must be expected to warrant starting the business? a. $41,234b. $43,405c. $45,689d. $48,094e. $50,625
Answers: 3
question
Business, 23.06.2019 02:00
How much more output does the $18 trillion u.s. economy produce when gdp increases by 3.0 percen?
Answers: 1
question
Business, 23.06.2019 11:30
Eon inc., electravia inc., and fc inc., the three largest firms in the consumer electronics industry, hold close to 85 percent of the industry's market share. these companies mainly compete against each other by providing unique features in their products rather than pricing them low. these firms are interdependent, and each firm must consider the strategic actions of its competitors. which of the following industry competitive structures does this scenario best illustrate? monopolistic competition oligopoly monopoly perfect competition
Answers: 2
You know the right answer?
Tp3.
lo 3.3as a manager, you have to choose between two options for new production equipment....
Questions
question
Chemistry, 24.04.2020 03:22
question
Mathematics, 24.04.2020 03:22
question
Chemistry, 24.04.2020 03:22
question
Spanish, 24.04.2020 03:22