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Use the Information Below to Answer the Following Questions

question 8

Multiple Choice

Use the information below to answer the following questions:
On 1 January 2012, Sky-High Ltd acquired 100 000 shares (30% of the voting interest) in Down Ltd for $600 000 cash. On 30 June 2012, Down Ltd announced its earnings per share for the first 6 months of 2012 at $1.50 per share. On 20 November, Down Ltd paid dividends to shareholders at $0.90 per share. On 31 December 2012, Down Ltd announced its earnings per share for 2012 at $2.80 per share (i.e., $1.30 additional since 30 June) .
-If Sky-High Ltd used the equity basis,what revenue would it record for the year ended 31 December 2012 in respect of its investment in Down Ltd?

Understand the law of diminishing returns and its implications for production and costs.

Identify the shapes and relationships among the ATC, AVC, and AFC curves.

Distinguish between short-run and long-run operational decisions in terms of costs and inputs.

Understand the principle of spreading overhead and how output level affects average fixed costs.

Definitions:

Placebo

A harmless pill, medicine, or procedure prescribed more for the psychological benefit to the patient than for any physiological effect.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility.

Sunlight

Electromagnetic radiation emitted by the Sun, essential for life on Earth, influencing climate and weather patterns and providing energy for photosynthesis in plants.

Tomato Yield

The quantity of tomatoes that is produced in a particular area or by a specific plant, often measured in weight or units per area.