Losses will exceed your total fixed costs

Assignment Help Financial Management
Reference no: EM13953676

If price of your product is below the minimum ATC you should: A) minimize your losses by producing where P=MC B) maximize your profits by producing where P=MC C) close down because by producing your losses will exceed your total fixed costs D) close because total rev exceeds TVC

Reference no: EM13953676

Questions Cloud

Quick ratio and total debt to total assets ratio : Using the financial data of the selected company, provide the following ratios: Current Ratio, Quick Ratio, and Total Debt to Total Assets Ratio. Discuss what these ratios mean and what their relevance is compared to industry standards.
Decided to ease monetary conditions : The Federal Reserve Board of Governors has decided to ease monetary conditions to counter early signs of an economic downturn. Because price inflation has been a burden in recent years, the Board is eager to avoid any action that the public might int..
Usually personal taxes are not taken into account : Usually personal taxes aren't taken into account when valuing a company. Briefly explain: Why taxes aren't taken into account on dividends and realized capital gains. Why WACC takes into account corporate taxes but not personal taxes
Cash outflow associated with the acquisition : Given the following information, what is the required cash outflow associated with the acquisition of a new machine; that is, in a project analysis, what is the cash outflow at t = 0?
Losses will exceed your total fixed costs : If price of your product is below the minimum ATC you should: A) minimize your losses by producing where P=MC B) maximize your profits by producing where P=MC C) close down because by producing your losses will exceed your total fixed costs D) close ..
Generate perpetual after-tax cash flows : A firm is considering a project that will generate perpetual after-tax cash flows of $16,000 per year beginning next year. The project has the same risk as the firm’s overall operations and must be financed externally. Equity flotation costs 14 perce..
A firm in truely competitive industry is confronted : A firm in truely competitive industry is confronted with an EQ price of $5, its marginal revenue:
Accounting profits are typically : Accounting profits are typically A) greater than economic profits because the former do not take explicit costs into account B) greater than economic because the former do not take implicit costs into account
Marginal cost : Marginal cost:

Reviews

Write a Review

Financial Management Questions & Answers

  When using control chart-process is out of control

When using a control chart, what are some patterns that would indicate that the process is out of control? Additionally explain what might cause a process to be out of control. In your responses to other students, relate and identify to an example of..

  About the refunding analysis

Mullet Technologies is considering whether or not to refund a $175 million, 13% coupon, 30-year bond issue that was sold 5 years ago. It is amortizing $8 million of flotation costs on the 13% bonds over the issue's 30-year life. Mullet's investment b..

  Fair value information on crickets assets and liabilities

Horizon Communications bought all of Cricket Cable’s voting stock on January 1, 2017 for $42,000, when Cricket’s book value was $8,000. Fair value information on Cricket’s assets and liabilities at the date of acquisition is as follows: Property and ..

  What does the market believe will be the stocks price

What does the market believe will be the stock's price at the end of 3 years and what ls the expected dividend per share for each of the 11011 5 years?

  Calculate the deltas of the call and put

A stock has a price of $31 and an annual return volatility of 59 percent. The risk-free rate is 3.03 percent. Calculate the call and put option prices with a strike price of $29 and a 90-day expiration.  Calculate the deltas of the call and put

  Prepare a loan amortization table

To expand its operation, Amarillo Industries has applied to the Local Bank for a 3-year, $3,500,000 loan. Prepare a loan amortization table assuming 10 percent rate of interest. Be sure to show “payment”; “principal” and “interest” for each year.

  What annual interest rate must they earn to reach their goal

Your parents will retire in 13 years. They currently have $300,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

  Prepare an income statement for krugpark in good form

KrugPark produces a popular beverage called odes us which sells for $97 a case. Last year KrugPark sold 170,000 cases, each of which costs $50 to produce. KrugPark incurred selling and administrative expenses of $670,000 and depreciation expense of $..

  What will the eps of potter be after the merger

The shareholders of Harry Company have voted in favor of a buyout offer from Potter Corporation. Harry has a P/E ratio of 6.35, 71,000 shares outstanding, and earnings of $239,000. Potter has a P/E ratio of 12.70, 132,000 shares outstanding, and earn..

  A firms preferred stock pays an annual dividend

A firm's preferred stock pays an annual dividend of $4, and the stock sells for $73. Flotation costs for new issuances of preferred stock are 7% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 35%?

  Higher standard deviation than stock

Please shortly explain how they arrived at the answers below? Stock A has a beta of 1.5, and stock B has a beta of 1.0. Determine whether each of the statements below is true or false. Stock A must have a higher standard deviation than Stock B. Stock..

  What number of scans are the scanners equally profitable

Seattle Grace Hospital plans to invest in a new piece of CT imaging equipment. The hospital estimates that it can bill $1,500 per scan. Preliminary market assessments indicate that demand will be fewer than 5,000 scans per year. At what number of sca..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd