The most recent financial statement for Momentum Industries are shown below: Income Statement Balance Sheet Sales $42,800 Current Assets $19,800 Long-term debt $39,000 Costs $35,500 Fixed assets $68,200 Equity $49,000 Taxable Income $7,300 Total $88,000 Total $88,000 Taxes (21%) $1,533 Net Income $5,767 Assets and costs are proportional to sales. The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued?

$2,962.19

Explanation:

We first need to calculate the return on equity (ROE) = net income / shareholders' equity = $5,767 / $49,000 = 11.7694%

now we calculate the plowback ratio = 1 - payback ratio

plowback ratio = 1 - 45% = 55%

then we need to determine the sustainable growth rate = (ROE x plowback) / [1 - (ROE x plowback)] = (11.7694% x 0.55) / [1 - (11.7694% x 0.55)] = 0.06473 / 0.93527 = 6.921%

maximum increase in sales = total sales x sustainable growth rate = $42,800 x 6.921% = $2,962.19

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.