Play Time is a nursery school for pre-kindergarten children. The school has determined that the following biweekly revenues and costs occur at different levels of enrollment:Number of Students Enrolled Total Revenue Total Costs10 $3,000 $2,100 15 4,500 2,700 16 4,800 2,800 20 6,000 3,200 21 6,300 3,255 The marginal cost when the twenty-first student enrolls in the school is:
A. $155.
B. $55.
C. $3,045.
D. $300.
E. $3,255.
Answer: B
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On the basis of audit evidence gathered and evaluated, an auditor decides to increase the assessed level of risk of material misstatement from that originally planned. To achieve an overall audit risk level that is substantially the same as the planned audit risk level, the auditor would:
A. increase materiality levels. B. increase detection risk. C. decrease amount of substantive testing. D. decrease detection risk.
Black Diamond, Inc., a manufacturer of carbon and graphite products for the aerospace and transportation industries, is considering several funding alternatives for an investment project. To finance the project, the company can sell 1,000 15-year bonds with a $1,000 face value, 7% coupon rate. The bonds require an average discount of $50 per bond and flotation costs of $40 per bond when being sold. The company can also sell 5,000 shares of preferred stock that will pay a $2 dividend per share at a price of $40 per share. The cost of issuing and selling preferred stocks is expected to be $5 per share. To calculate the cost of common stock, the company uses the dividend discount model. The firm just paid a dividend of $3 per common share. The company expects this dividend to grow at a
constant rate of 3% per year indefinitely. The flotation costs for issuing new common shares are 7%. The company plans to sell 10,000 shares at a price of $50 per share. The company’s tax rate is 40%. a) Calculate the company’s after-tax cost of long-term debt. b) Calculate the Company’s cost of preferred equity. c) Calculate the company’s cost of common equity. d) Calculate the company’s weighted average cost of capital. e) What is the company’s weighted average cost of capital without flotation costs?
Which of the following is one of the stages of the five-stage development model for teams?
A. team performance curve B. reforming C. prenorming D. performing
Article 2 of the UCC applies to contracts for the sale and lease of goods
Indicate whether the statement is true or false