Let's try to determine the cost function for another company like abc who makes sausages. assume costs are as follows: monthly depreciation on buildings and equipment is $17,285 product costs are $1 per pound produced wages are $2.68 per pound produced supervisory salaries total $13,068 per month utilities cost $3,178 per month plus $.20 per pound produced. what is the variable cost portion of their cost formula

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%