Marginal Product

Please help me with this question in the attachment below. Thank you. --- A trust company is paying a commission to real estate agents for housing units sold at a flat rate of $2000 & $3000 per unit. The manager estimates the following marginal product schedule for the agents. (see attachment for chart) What would the marginal revenue product schedule be for $2000 & $3000 per unit using the information above? If the manager must pay a wage rate of $32,000 per yr, how many agents should he hire & why? If wage rate drops to $18,000 per yr, how many agents should he hire? When the trust company is paying $3000 per unit sold & the wage rate is $30,... click for more

Short run losses

If there is a debate between a CEO and the president of a company as to whether or not to shut down a firm's plant in Texas that is currently losing $60,000 monthly and the president of the company says they should continue to operate, at least until a buyer is found for the production facility because that the Texas plant's fixed costs are $68,000 per month. However, the CEO says that fixed costs don't matter. 1. Should the Texas plant be closed or continue to operate at a loss in the short run? 2. How would you explain to the incorrect party that he is wrong?

Required External Financing

a. Required External Financing. Executive Fruit’s financial manager believes that sales in 2003 could rise by as much as 20 percent or by as little as 5 percent. a. Recalculate the first-stage pro forma financial statements (Table 18–5) under these two assumptions. How does the rate of growth in revenues affect the firm’s need for external funds? b. Assume any required external funds will be raised by issuing long-term debt and that any surplus funds will be used to retire such debt. Prepare the completed (second-stage) proforma balance sheet. In the second-stage proforma, you should account for the impact of interest payments on debt raised at the beginning of the year. b. ... click for more

Need addtional help on calculations and explaining

I have attached a spreadsheet that I recieved help from someone there but I can't seem to figure out how they came to there answers. I need the calculation for question 1 part 1 On question 2 part 1 Please let me know if the numbers are correct. For part 2 Q2 I need a more af a detailed explanation I can't think of anything else to write other than what i have down. Please help. I have attached the questions below and the spread sheet Part 1 # 1- calculate the year-to-year growth in Total Assets #2 - Do you think the company will hit a target sales growth of 17%? Part 2 #1 - using the Percentage of Sales Method calculate a 25% growth in sales to forecast Micro C... click for more

NPV IRR

There are two mutually exclusive projects under consideration by the Stephen Company. The following is the expected cash flows from the projects: Year Project A Project B 0 -30,000 -60,000 1 10,000 20,000 2 10,000 20,000 3 10,000 20,000 4 10,000 20,000 5 10,000 20,000 The cost of capital is 14%. Please calculate the following for each project: • NPV IRR (Round to the nearest whole percentage) • Profitability index • Payback period