Define whether a motor carrier's costs are more fixed or variable. Explain your answer
A motor carrier cost structure is primarily variable with as much as 70 to 90 percent falling in that category. The primary reason for this is that the motor carrier does not bear the cost of the highways and does not have to maintain them whether or not the carrier uses them or not. Motor carriers can quickly increase or decrease equipment as business changes. The vast majority of carriers do not have terminals to maintain. Most of the carrier's cost are directly related to operating expense.
Labor accounts for as much as 50 percent of a carrier's expense. Those firms which are non-union can adjust the size of the work force quickly so as to avid excess labor costs.
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A seller who tenders nonconforming goods has reasonable grounds to believe that the buyer will accept the tender if it includes a price allowance.
Answer the following statement true (T) or false (F)
When a firm develops a knowledge asset, such as a process, pays for it and reuses it over and over at a very low cost, this adds ________ for the firm.
A. little value B. a competitive advantage C. tacit knowledge D. a recoverable loss
Eccles Inccorporated Eccles Incorporated, a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 25%. Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. Refer to the data for Eccles Incorporated. Assume that the firm's gain from leverage according to the Miller model is $126,667. If the effective personal tax rate on stock income is TS = 20%, what is the implied personal tax rate on debt income?
A. 12.8% B. 14.2% C. 15.8% D. 17.6% E. 19.6%
An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that
A. competitive products lack. B. can be seen easily in a photograph. C. are familiar concepts to those in the target market. D. competitive products have as well. E. are reasonably inexpensive to develop.