Concierge industries manufactures 40,000 components per year. the manufacturing cost of the components was determined as follows: direct materials direct labor variable manufacturing overhead fixed manufacturing overhead total $ 75,000 120,000 45,000 60,000 300,000 an outside supplier has offered to sell the component for $12.75 concierge industries can rent its unused manufacturing facilities for $45,000 if it purchases the component from the outside supplier what is the effect on income if concierge purchases the component from the outside supplier? oa. $135,000 increase b. $165,000 decrease o c. $ 195,000 increase od. $225,000 decrease

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.