Answer and Explanation:
The computation is shown below;
a. Contribution Unit for vita Joy
Retail Price $1.00
Retail Margin 33%
Retail Profit $0.33 (1.00 × 33%)
Retail Cost $0.67 (1 - 0.33)
Wholesale Margin 12%
Wholesale Profit $0.08 (0.67 × 12%)
Wholesale Cost $0.59 (0.67 - 0.08)
Manufacturers Selling Price per unit $0.59
Variable manufacturing cost per unit $0.09
Variable cost of commission per unit $0.06 (10% × 0.59)
Variable shipping cost brokerage etc $0.02
Total Variable cost per unit $0.17 (0.09+0.06+0.02)
Unit contribution of vita joy $0.42 (0.59 - 0.17)
2 Now Break even point in unit is
= Total Fixed Costs ÷ Contribution units
where,
Total fixed cost is
Fixed Manufacturing Cost $900,000
Advertising cost $500,000
Product manager's Salary and expenses $35,000
Total Fixed Costs $1,435,000
And, the contribution units is $0.42
So the break even point is
= $1,435,000 ÷ $0.42
= 3,416,667 units
A firm has provided you with the following information:
Output 30
Variable Cost $1,900
Fixed Cost $120
Marginal Cost $50
Price $50
a. What is the firm's short-run profit if they produce using the MC=MR rule?
b. What is the firm's short-run profit if they produce nothing?
c. What will be the firm's production decision in the short-run?
1. Shutdown
2. Exit
3. Operate
Answer:
(a) Output produced = 30 , Price = $50
Total revenue = Output produced * Price = 30 units * $50 = $1,500
Total Cost= Variable cost + Fixed cost = $1900 + 120 = $2020
At profit maximization or loss minimization point, MR = MC.
Corresponding to an output level of 30, MR=MC =$50
Note: Price is constant at $50. So, the marginal revenue will be $50 at each level of output
Profit = Total revenue - Total Cost.
Profit = $1500 - $2020
Profit = -$520.
The firm's short-run profit is -$520 if they produce using MR=MC.
(b) If a firm produces nothing, then a firm has to bear a fixed cost of $120. It means there is a loss of $120 or a profit of -$120. So, short-run profit is -$120 if they produce nothing.
(c) In the short run, if the firm produces then bear a loss of $520. if a firm produces nothing then bear a loss of $120. So, it is better to shut down the production in the short run in order to minimize the loss of the firm.
During 2021, its first year of operations, American Laminating Corporation reported an operating loss of $120 million for financial reporting and tax purposes. The enacted tax rate is 25%. In 2019, American reported a pretax accounting income of $40 million and applies a net operating loss carryforward up to 80% of taxable income. Which of the following is incorrect?
a. Income tax payable in 2018 is zero.
b. Net loss in 2018 is $79 million.
c. The deferred tax asset balance at the end of 2018 is $21 million.
d. The deferred tax asset balance decreases in 2019.
e. Income tax expense in 2019 is zero.
Answer: e. Income tax expense in 2019 is zero.
Explanation:
There will still be an income tax in 2019 so the above statement is incorrect.
American applies net operating loss carryforward up to 80% of taxable income which means that their taxable income is:
= 40,000,000 * ( 1 - 80%)
= $8,000,000
Income tax expense for 2019:
= 25% * 8,000,000
= $2,000,000
What can a speaker do to ensure that they are respectful of their audience, especially when speaking to a skeptical audience or an audience that has different values than their own? What considerations should a speaker take if they are presenting a topic that is new to the audience?
Answer:
Be Honest and Avoid Plagiarism. Credible public speakers are open and honest with their audiences. Identify Your Sources. Decide When to Cite. Cite Sources Properly. Understand Paraphrasing and Direct Quotations. Develop Accurate Citations. Set Responsible Speech Goals. Promote Diversity.
You have just graduated from college and are looking to buy your first car. Money is tight right now, so you are concerned with initial cost as well as ongoing expenses. At the same time, youdon't want to drive a slow, outdated car like your parents do. You have narrowed your choices down to two vehicles: a Honda Enigma and a Bizzarrini Booster. Based on the numbers below, calculate the value index for each car. Which car provides you with the greatest value?
LOADING...
Click the icon to view the data table.
The value index for Honda Enigma is
Dimension Importance to you Honda Enigma Bizzarrini Booster
Fuel economy 4 2 1
Reliability 3 2 1
Speed and handling 5 4 4
Aesthetics 5 3 5
After-sales support 4 4 4
Purchase price 3 4 2
Answer:
Importance to you Honda Enigma Bizzarrini Booster
Fuel economy 4 2 1
Reliability 3 2 1
Speed and handling 5 4 4
Aesthetics 5 3 5
After-sales support 4 4 4
Purchase price 3 4 2
Honda's value index (4 x 2) + (3 x 2) + (5 x 4) + (5 x 3) + (4 x 4) + (3 x 4) = 77
Bizzarrini's value index (4 x 1) + (3 x 1) + (5 x 4) + (5 x 5) + (4 x 4) + (3 x 2) = 74
You should choose the Honda Enigma.
Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.
Group of answer choices
equity
utilitarianism
validity
righteousness
justice
Answer: Justice.
Explanation: Justice is a moral principle that leads people to act in the correct way according to established laws. When speaking at the business level, justice seeks that people are paid in a reasonable way according to their functions, that there is no inequality, and that everyone can receive the treatment they deserve.
Why is a spending plan an important part of financial planning? Choose all that are correct. а b C Helps to manage your money in a positive manner Helps to set and reach goals Tells you what your net worth is Helps to analyze the opportunity costs of your trade-offs to maximize financial well-being Can help to Increase net worth
Answer:
- Helps to manage your money in a positive manner.
- Helps to analyze the opportunity costs of your trade-offs to maximize financial well-being.
- Can help to increase net worth.
Explanation:
Having a Spending plan is very crucial to ensure that you have a sufficient amount of money every time in order to use it in time of need or emergency. It helps in keeping control and management of the money you spend which promotes a managed financial future. This further enhances your net worth as an individual by preventing unnecessary expenses and also assist in attaining financial goals more effectively and efficiently.
5) Clark Imports sold a depreciable plant asset for cash of $35,000. The accumulated
depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under
these circumstances, the original cost of the asset must have been:
Answer:
$110,000
Explanation:
For depreciation, a loss or gain is realized by subtracting the selling price from the book value. Accumulated depreciation is the total amount that has been deducted as depreciation amount.
I.e., profit or loss = selling price - book value
In this case, a loss of $5000 was realized, the selling price was $35,000. The book value must have been $40,000.
$35,000 - $40,000 = - $5,000
The original cost will be the book value + depreciation amount
=$40,000 +$70,000
=$110,000
Ford Motor Company is considering launching a new line of hybrid diesel-electric SUVs. The heavy advertising expenses associated with the new SUV launch would generate operating losses of million next year. Without the new SUV, Ford expects to earn pre-tax income of $80 million from operations next year. Ford pays a 35% tax rate on its pre-tax income. The amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is closest to ________. Group of answer choices $15.8 million $40.3 million 12.3 million $28.0 million
Answer:
$28 million
Explanation:
The amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is = $80 million * 35% = $28 million. Because the SUV have not been launched, the operating loss associated with heavy advertising will not be considered.
Beth, a recent college graduate, recognizes that she has lots of nice "stuff," largely thanks to her family buying it for her. Beth also recognizes that she has a lot of debt, thanks to her student loans. When Beth considers the difference between the monetary value of her possessions and other financial assets and her debt, she is best described as pondering her:______
a. income.
b. class position.
c. prestige.
d. wealth
Answer:
D
Explanation:
Wealth is the value of all the assets a person owns
Beth is pondering on the value of all her assets less her debt. So, she is pondering on her wealth
Equivalent units for the molding department totaled 18,600 during January for conversion costs. Fifteen thousand units were transferred out to the finishing department. If the items remaining in ending inventory are 40% complete as to conversion costs and 80% complete as to materials, how many physical units are in ending inventory?
Answer:
9,000 units
Explanation:
The 15,000 units transferred to the finishing department were 100% complete with respect to material and conversion cost. The balance 18,600 - 15,000 = 3,600 equivalent units are there at the ending inventory with respect to conversion cost. The ending inventory is 40% complete with respect to conversion cost. These equivalent units have been calculated as below:
=> Physical units in ending inventory * Degree of completion with respect to conversion cost = Equivalent units
Physical units * 40% = 3,600
Physical units = 3,600 / 40%
Physical units = 9,000 units
So, the Physical units in ending inventory is 9,000 units
$400 invested with compound interest at a rate of 3% per year for 2 years. Formula: M = P(1+ i)n
Answer:
$424.36
Explanation:
The applicable formula =M= P ( 1+ r)^2
Where M is the amount after two years
P = principal amount: $400
r = interest rate: 3% or 0.03
n =number of period :2
M= $400 x ( 1+ 0.03) ^ 2
M=$400 x 1.0609
M= $424.36
CSelect the items from this list that are examples of misconceptions.
A high school student is too young to have a budget.
A bank is not a safe place to keep your money.
Buy stock before you have a steady income.
After high school, there is no need to become more educated.
Save your money as soon as you have a full-time job.re the deadline.
Which of the following is NOT a factor in selecting a pricing method?
Auditory preferences
Costs
Competition
Perceived value
Answer:
perceived value
Explanation:
goodluck
Suppose you are an economist for Mattel, manufacturer of the doll Barbie, which was making an unsolicited bid to take over Hasbro, manufacturer of the doll G.I. Joe.
a. Would you argue that the relevant market is dolls, preschool toys, or all toys including video games? Why?
1. You would want the regulatory boards to see more competition, so you would argue that the relevant market is all toys, which is as broad as possible. This would make it less likely that the merger would violate merger guidelines.
2. You would want the regulatory boards to see more competition, so you would argue that the relevant market is all toys, which is as narrow as possible. This would make it less likely that the merger would violate merger guidelines.
3. You would want the regulatory boards to see more competition, so you would argue that the relevant market is dolls, which is as narrow as possible. This would make it less likely that the merger would violate merger guidelines.
4. You would want the regulatory boards to see more competition, so you would argue that the relevant market is dolls, which is as broad as possible. This would make it less likely that the merger would violate merger guidelines.
b. Would your answer change if you were working for Hasbro?
1. You would want to use the narrowest definition of the market, which would be dolls. This would make it less likely that the merger would violate merger guidelines.
2. You would want to use the narrowest definition of the market, which would be dolls. This would make it more likely that the merger would violate merger guidelines.
3. You would want to use the broadest definition of the market, which would be all toys. This would make it more likely that the merger would violate merger guidelines.
4. You would want to use the narrowest definition of the market, which would be all toys. This would make it less likely that the merger would violate merger guidelines.
Answer:
a. 1. You would want the regulatory boards to see more competition, so you would argue that the relevant market is all toys, which is as broad as possible. This would make it less likely that the merger would violate merger guidelines.
b. 2. You would want to use the narrowest definition of the market, which would be dolls. This would make it more likely that the merger would violate merger guidelines.
Explanation:
a. In order to avoid anti-trust laws, it would be best that Mattel convinces the authorities that the relevant category is all toys not just a subsection. This will show that the toys made by the new company would have a lot of competition from other toy makers across the board which would reduce their chances of being a monopoly and violate merger guidelines.
b. As the bid is unsolicited, Hasbro might want to defend against it. In which case their strategy should be the exact opposite of that of Mattel and they should try to convince the regulatory boards that they would be in the narrowest of markets which would be dolls. This would mean that the merger has a strong chance of leading to a monopoly and would violate merger guidelines.
what are the similarities between scientific theory and bureaucratic theory?
Answer:
The Scientific Theory is based on using data and human strengths to increase output, while the Bureaucratic management style focuses on hierarchies and tight job roles. Regardless of the organization, the goals remain the same across the board. Every organization strives to minimize costs, while maximizing output.
Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 12 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 35 percent.
a. What is Mullineaux's WACC?
b. The companies president has approached you about Mullineaux's capital structure. He wants to know why the company doesn't use more preferred stock financing because it costs less than debt. What would you tell the president?
Answer:
a. Mullineaux's WACC = 0.60*12 + 0.05*5 + 0.35*7*(1 - 0.35)
WACC = 7.2 + 0.25 + 0.35*7*0.65
WACC = 7.2 + 0.25 + 1.5925
WACC = 9.0425%
WACC = 9.04%
b. After tax cost of debt = 7*(1 - 0.35)
After tax cost of debt = 7*0.65
After tax cost of debt = 4.55%
So since after tax cost of debt of 4.55% is less than the preferred cost of 5%, company should use debt in its capital structure.
The Oklahoma Department of Transportation (ODOT) is looking at the purchase of a new technology for asphalt paving of major highways. The new machine will cost $1,000,000 and is expected to provide a net revenue of $150,000 per year for 9 years. There is no salvage value for this machine. If MARR=10% per year, what is the exact IRR for this project?
A. 15.15%
B. 13.68%
C. 6.47%
D. 2.14%
Answer:
Option C (6.47%) is the right answer.
Explanation:
The given values are:
New machine's cost,
= $1,000,000
Net revenue,
= $150,000
Time,
= 9 years
MAAR,
= 10% per year
Now,
On taking, i = 5%
⇒ PW(5%) = [tex]-1,000,000 + 150,000(\frac{P}{A} , 5 \ percent, 9)[/tex]
= [tex]-1,000,000 + 1,066,200[/tex]
= [tex]66,200[/tex]
On taking, i = 10%
⇒ PW(10%) = [tex]-1,000,000 + 150,000(\frac{P}{A} , 10 \ percent, 9)[/tex]
= [tex]-1,000,000 + 863,85 0[/tex]
= [tex]-136,150[/tex]
By interpolation, we get
⇒ [tex]i=5 \ percent + [\frac{66,220-0}{(66,200-(-136,150)} ]\times (10 \ percent - 5 \ percent)[/tex]
⇒ [tex]=0.05 + (\frac{66,220}{202,350} )\times 0.05[/tex]
⇒ [tex]=0.0663[/tex]
i.e.,
⇒ [tex]= 6.63 \ percen t[/tex]
The Least used communication
channel in an organization is usually
Select one:
a. Horizontal
b. Downward
c. Diagonal
d. Upward
= Horizontal
Manufacturing Income Statement, Statement of Cost of Goods Manufactured
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.
On Company Off Company
Materials inventory, December 1 $74,060 $96,280
Materials inventory, December 31 (a) 108,800
Materials purchased 188,110 (a)
Cost of direct materials used in production 198,480 (b)
Direct labor 279,210 216,630
Factory overhead 86,650 107,830
Total manufacturing costs incurred in December (b) 622,930
Total manufacturing costs 706,540 854,960
Work in process inventory, December 1 142,200 232,030
Work in process inventory, December 31 119,980 (c)
Cost of goods manufactured (c) 617,150
Finished goods inventory, December 1 125,160 107,830
Finished goods inventory, December 31 131,090 (d)
Sales 1,091,640 962,800
Cost of goods sold (d) 622,930
Gross profit (e) (e)
Operating expenses 142,200 (f)
Net income (f) 213,740
Required:
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
b. Prepare On Company's statement of cost of goods manufactured for December.
c. Prepare On Company's income statement for December.
Answer:
On company
a. $63,690
b. $564,340
c. 587,360
d. $622,930
e. $510,210
f. $368,010
Off company
Explanation:
On company
Statement of cost of goods manufactured for the month ended.
Raw materials at the beginning
$74,060
Add purchases
$188,110
Raw materials available
$262,170
Less Raw materials at close
($63,690)
Cost of raw materials used
$198,480
Add direct labor
$279,210
Prime cost
$477,690
Add factory overhead
$86,650
Manufacturing cost
$564,340
Add beginning work in process
$142,200
Less ending work in process
($119,180)
Cost of goods manufactured
$587,360
•Statement of cost of goods sold
Finished goods at the beginning
$125,160
Add cost of goods manufactured
$587,360
Cost of goods available for sale
$712,520
Less finished goods at end
($131,090)
Cost of goods sold
$581,430.
Off company
Statement of cost of goods manufactured for the month ended
Raw materials at the beginning
$96,280
Add purchases
$93,390
Raw materials available
$189,670
Less Raw materials at close
($108,800)
Cost of raw materials used
$298,470
Add direct labor
$216,630
Prime cost
$515,100
Add factory overhead
$107,830
Manufacturing cost
$622,930
Add beginning work in process
$232,030
Less ending work in process
($237,810)
Cost of goods manufactured
$617,150
•Statement of cost of goods sold
Finished goods at the beginning
$107,830
Add cost of goods manufactured
$617,150
Cost of goods available for sale
$724,980
Less finished goods at end
($102,050)
Cost of goods sold
$622,930
• On company
Income statement for the month ended
Sales
$1,091,640
Less cost of goods sold
($581,430)
Gross profit
$510,210
Less operating expenses
($142,200)
Net income
$368,010
Off company
Income statement for the month ended
Sales
Less cost of goods sold
Gross profit
Less operating expenses
Net income
Rodriguez Corporation issues 8,000 shares of its common stock for $208,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
a. The stock has a $14 par value.
b. The stock has neither par nor stated value.
c. The stock has a $7 stated value.
Answer:
A. Dr Cash $208,800
Cr Common stock, $14 par value $112,000
Cr Paid-in capital in excess of par value,common stock $96,800
B. Dr Cash $208,800
Cr Common stock, no-par value $208,800
C. Dr Cash $208,800
Cr Common stock, $7stated value $56,000
Cr Paid-in capital in excess of statedvalue, common stock$152,800
Explanation:
Preparation of Journal entries
a. The stock has a $14 par value.
Dr Cash $208,800
Cr Common stock, $14 par value $112,000
($14 par value*8,000 shares)
Cr Paid-in capital in excess of par value,common stock $96,800
($208,800-$112,000)
b. The stock has neither par nor stated value.
Dr Cash $208,800
Cr Common stock, no-par value $208,800
c. The stock has a $7 stated value.
Dr Cash $208,800
Cr Common stock, $7stated value $56,000
($7 par value*8,000 shares)
Cr Paid-in capital in excess of statedvalue, common stock$152,800
($208,800-$56,000)
During the year, the Senbet Discount Tire Company had gross sales of $1.14 million. The firm’s cost of goods sold and selling expenses were $533,000 and $223,000, respectively. The firm also had notes payable of $880,000. These notes carried an interest rate of 7 percent. Depreciation was $138,000. The firm’s tax rate was 35 percent.
What was the firm’s operating cash flow? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Round your answer to the nearest whole number, e.g., 32.)
Answer:
$319,460
Explanation:
Calculation for the firm’s operating cash flow
First step is to calculate EBIT and Taxes
Sales $1,140,000
Less Cost of goods sold 533,000
Less Selling costs 223,000
Less Depreciation 138,000
EBIT $246,000
Interest 61,600
(7%*$880,000)
Taxable income $184,400
(246,000-61,600)
TAXES 64,540
(35%*$184,400)
Now let calculate the firm’s operating cash flow using this formula
Operating cash flow = EBIT + Depreciation - Taxes
Let plug in the formula
Operating cash flow = $246,000 + $138,000 - $64,540
Operating cash flow = $319,460
Therefore the firm’s operating cash flow is $319,460
Sample
is the number of people questioned for a survey.
Answer: could you add the picture of the survey
Explanation:
The job satisfaction of an employee
is depending on the
Select one:
a. Behaviour
b. Attitude
c. Employer
d. Personality
= Attitude
Answer:
Job satisfaction depends on several different factors such as satisfaction with pay, promotion opportunities, fringe benefits, job security, relationship with co-workers and supervisors, etc. ... Factors affecting the level of job satisfaction are; Working Environment.
ATTITUDE
Job satisfaction and also organizational responsibility are two key attitudes that are considered applicable to important outcomes. The Correct option is 'B'.
What is Job Satisfaction?
Job Satisfaction is the essential segment of employee motivation and motivation towards more satisfactory interpretation.
Many people have determined job satisfaction and memorialized that most employees have issues with their leader who is not presenting them the consideration they deserve.
Supervisors also conduct harsh behaviors toward workers due to which they are not satisfied sharing good and creative ideas with their leaders.
Job satisfaction relies on several different elements such as satisfaction with pay, fringe benefits, promotion opportunities, relationship with co-workers job security, supervisors, etc.
Elements affecting the status of job satisfaction are; Working Environment.
Therefore, The correct option is 'B' ATTITUDE.
Find more information about Job Satisfaction here:
https://brainly.com/question/3292050
if quantity demamded is completely unresponsive to changes in price ,demand is what?
Answer:
If quantity demanded is completely unresponsive to changes in price, demand is Perfectly inelastic.
Explanation:
Perfectly inelastic demand means that quantity demanded remains the same when price increases or decreases. Consumers are completely unresponsive to changes in price.
I hope it's helpful
What is the purpose of preserving historical data?
A.
legal compliance
B.
recruitment
C.
leave sanctions
D.
payroll
Answer:
What is the purpose of preserving historical data?
A.legal compliance
Congratulations! You just graduated with a degree in management. As you reflect on your school experience, you make a list of the reasons you were so efficient with your studies. Which of the following statements relate specifically to your efficiency?
a. Last year, you reviewed the course schedule to ensure you knew when to enroll in certain electives that are offered per year.
b. When registration opened for each term, you immediately registered for the classes you needed, especially the quickly.
c. Throughout your time in you chose electives that would provide you with a education, and based on easy you heard classes were.
d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date.
Answer: After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation
Explanation:
Efficiency has to do with one's ability to achieve a particular goal while avoiding wastage. One who does something efficiently, does that particular thing sufficiently.
The option that relates to efficiency is option D "After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date".
This brings about efficiency as one is on track to achieving a goal.
Centrum vitamins segments its line of vitamins based on gender and age group (e.g., one line of vitamins is for men over the age of 50). This is an example of market segmentation based on variables of
a. demographics.
b. lifestyles.
c. psychographics.
d. behavior.
e. personality characteristics.
Answer:
A
Explanation:
Segmentation is the division of people into certain groups based on shared characteristics.
In demographic segmentation, people are placed into groups based on age, gender, ethnicity and other demographic factors
If an audience doesn't trust you, they won't listen to you. To establish credibility, speakers must earn the audience's trust. What do you think a speaker can do to establish themselves as credibile and trustworthy? What are some things speakers may do that take away from their credibility?
Answer:
Lies.
Explanation:
If i say i'm a rich and talented speaker I better have the proof to back it up otherwise they'll know "I'm" just a phony and all talk. To make urself trustworthy u have to borrow and the day after return somebody's money, or just always do what u say ur going to.
Suppose you are conducting an analysis of the financial performance of Green Caterpillar Garden Supplies Inc. over the past three years. The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company's relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios.
Ratios Calculated
Year 1 Year 2 Year 3
Price-to-cash-flow 6.20 8.06 9.03
Inventory turnover 12.40 14.88 16.67
Debt-to-equity 0.30 0.32 0.38
Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report?
A. The company's creditworthiness has improved over these three years as evidenced by the increase in its debt-to-equity ratio over time.
B. The market value of Green Caterpillar Garden Supplies Inc.'s common shares declined over the three years.
C. A plausible reason why Green Caterpillar Garden Supplies Inc.'s price-to-cash-flow ratio has increased is that investors expect higher cash flow per share in the future.
. An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better inventory management.
Answer:
The answer "Option C and Option D".
Explanation:
In Option A, This statement doesn't apply because its rise throughout the debt ratio contributes to a reduction in financial health. In Option B, This statement doesn't apply because the industry value of the stock could not be assumed to decrease. In Option C, This statement applies because the price-to-cash flows increase might be due to shareholders anticipating additional cash flow for each stock. In Option D, This statement is applicable because its increasing inventory selling ratio reflects the enhanced inventory control.An economist will consider the sunk cost of a product line before recommending an improvement to the product. True or false
Answer:
false
Explanation: