If increasing physical capital increases productivity, why would a company not buy newer, faster computers for all its workers e

23% decline.

This can be calculated by dividing 1,650,000 by 2,150,000, resulting in 0.7674. By multiplying this figure by 100, we arrive at 76.74%.

Yet, this represents the proportion that 1,650,000 constitutes of 2,150,000. Hence, we need to subtract this number from 100, yielding 23.26, or rounded to 23%.

Since many individuals purchase their items, they can generate enough revenue to remain profitable, even while offering lower prices.

Answer:

The result is $12.

By applying the formula total credit /Money created = Total deposit /Cash reserve ratio

Total deposit = $150

Cash reserve ratio = 12.5%

150/12.5

=12

Consequently, the total money generated in the banking system is $12. It can be concluded that money creation by banks is a mechanism whereby banks accept deposits from clients and provide loans to borrowers after subtracting the cash or reserve ratio.

Answer:

The right choice is option (D).

Explanation:

The scenario provides the following information:

Operating Income (EBIT) = $2,500,000

Depreciation Expense = $500,000

Tax rate = 40%

Net investment = $1,000,000

Thus, we can determine BBC's free cash flow using this formula:

= EBIT × (1 - Tax Rate) + Depreciation & Amortization - Net investment

Insert the values into the formula above:

So, the calculation becomes:

= $2,500,000 × (1 - 40%) + $500,000 - $1,000,000

= $1,500,000 + $500,000 - $1,000,000

= $1,000,000

Response:

The avoidable costs linked to the segment amount to $754,000

Detailed explanation:

The costs tied to the segment under consideration for elimination are as follows:

- Advertising costs = $140,000

- Salaries for supervisors = $300,000

- Allocation of costs at the company level = $130,000

- Loss incurred from unsold building (*): $60,000

- Maintenance costs on equipment = $112,000

- Real estate taxes on the building = $12,000

The cumulative cost amounts to $754,000

(*) The earnings from the sold building (book value) = Market value of the building $160,000 - Book value of the building $100,000 = $60,000