1. Which of the following would increase the likelihood that a company would increase its debt ratio in its capital structure? a. An increase in costs incurred when filing for bankruptcy. b. An increase in the corporate tax rate. c. An increase in the personal tax rate. d. None of the statements above is correct. ANSWER: B An increase in the corporate tax rate would mean that firms would get larger tax breaks for interest payments. Therefore‚ firms have an incentive to increase interest payments
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Agri-environment contract adoption under fixed and variable compliance costs. This report looks at the agri-environment contract adpted by farmers’ to be able to contribute and partake in the enrivonmental schemes through pressure groups and government. It provides disctinct description to the differences in fixed and variable costs. The purpose of explaining the differences were to illustrate how farmers partaking to the project would be different than how much land will be needed to chip in the
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retail outlets. Trucks are used to transport the goods from two plants to the warehouses‚ and then from the warehouses to the three retail outlets. Using the units of full truckloads‚ the following table shows each plant’s monthly output‚ its shipping cost per truckload sent to each warehouses‚ and the
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to add that cost behavior is also identifying the key resources that are performed‚ resources used in performing these activities‚ costs of the resources‚ and what the cost is driven from. 2-2. Two rules of thumb when analyzing cost behavior are to manage what the company manufactures‚ sells‚ and to give advice as to where costs can be reduced. 2-3. Three examples of a variable cost are a 12% increase in the production of dresses‚ which will cause a 12% increase in variable costs. A 10% increase
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ESTABLISHMENT OF THE FITNESS HAVEN CENTER IN BAUAN‚ BATANGAS EDGAR M. TUMLOS‚ JR. Master in Business Administration (Non – Thesis Program) 2011 INTRODUCTION Our ancestors were pre-occupied with one thought and that is survival. To be able to satisfy this need‚ they devised plans to carry this out. They had used the bark of trees to protect their bodies from the changing weather‚ thus evolved the knowledge of the earliest people about clothing. Since the manner of living was simple‚ they had resorted
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Variable costing vs Absorption costing Variable and Absorption costing are two different methods and ways that many organizations use to determine and calculate product cost. The income statements formats of both methods include period and product costs. However‚ each one has a different cost classification definition. Both have the same direct material and direct labor allocation‚ the differences is how they report the income‚ product‚ and pricing One of the main differences between
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UR UMUC Healthy Fitness Center Case Study‚ Stage 1: Business Environment Analysis XXX XXXXX University of Maryland University College - Europe An Analysis of UR UMUC Fitness Center The Business Environment Analysis for the UR UMUC Healthy Fitness Center was conducted to understand the current state of the business and use that resulting information to determine the best course of action to improve the business modal of the organization. As the new manager of the facility‚ it
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Question4: What closing time should Citywide Spirits Shoppe choose to maximize profits? Through the Attachment: (Evening time) Contribution Margin = average purchase revenue-average purchase cost = $30.52-$23.25 = $7.27 per customer per purchase Average numbers of customer: (Attachment 2) close time averge customers Time Total customer 10pm 10.18 10pm~11pm 12 11pm 10.16 10pm~12pm 21 12pm 10.08 10pm~1am 27 1am 9.71 10pm~2am 32 2am 9.4 10pm~3am 36 3am 9.06 10pm~4am
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up with Marsh’s childhood friend and health food store owner Arnold Greenberg to sellpure fruit juice as the “Unadulterated Food Products Co.” In 1978‚ they created an apple soda that fizzled - so much that several bottles exploded - inspiring the “snap” in the drink’s eventual name. They bought the rights to the name from a man in Texas for what then seemed like a very expensive price of $500. Over time they established themselves as the “first company to produce a complete line of all-natural beverages
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the relevant cost is the cargo cost only. Therefore‚ profit contribution of carrying I ton of tapioca from Balik and Singapore: Expected revenue $5.10 Less freight cost (0.25+0.56) 0.81 Profit Contibution 4.29 From Singapore to Balik: Expected Revenue $2.70 Less freight cost (0.16+0.32+0
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