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Sholpan [36]
3 years ago
9

If the average cost of producing ten sweaters is $6.50 and the marginal cost of producing the tenth sweater is $6.75, the averag

e cost of producing 11 sweaters will be:
Business
1 answer:
hammer [34]3 years ago
3 0

Answer:

7.15 dollars

Explanation:

Cost of one sweater=$6.50/10

=$0.65

Now,

Cost of 11 sweater = $0.65*11

=$7. 15

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Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will
Solnce55 [7]

Answer:

Duration of liability (perpetual) = (1 + y) / y

= (1 + 17.5%) / 17.5%

= 6.71

Value of liability = Cash Flow / yield

= $3.5 million / 17.5%

= $20 million

a. Assume you invest w in 5-year bond and 1-w in 25-year bond such that the duration of the portfolio is 6.71

6.71 = w x 4 + (1 - w) x 16

w = (16 - 6.71) / (16 - 4)

w = 77% in 5-year bond

1 - w = 28% in 25 year bond

Market Value of 5 year bond = 77% * $20 million = $15.4 million

Market Value of 20 year bond = 23% * $20 million = $4.6 million

b. Market Price of 20 year bond can be calculated using PV function on a calculator

N = 25, I/Y = 17.5%, PMT = 9, FV = 100

Price = Present Value (25,17.5%, 9 ,100)

Price = 52.29042644

Price = $52.30

Par Value of 25 year bond = Market Value /% Price

Par Value of 25 year bond = $4.6 million / 50.83%

Par Value of 25 year bond = $9,049,774

6 0
3 years ago
A company uses a periodic inventory system. The company had beginning inventory of 3 units that cost $5 each. During the month,
lesantik [10]
I believe it is C or D
7 0
3 years ago
Suppose the accompanying table contains data on how many veggie delite sandwiches subway is willing to sell each day at two diff
erastovalidia [21]

The daily price elasticity of supply is 0.1.

<h3>What is the price elasticity of supply?</h3>

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

Percentage change in quantity supplied = (210,000 / 200,000) - 1 = 5%

Percentage change in price = ($7.50 / $5) - 1 = 50%

Price elasticity of supply = 5%/50% = 0.1

Please find attached the required table. To learn more about price elasticity, please check: brainly.com/question/18850846

5 0
2 years ago
Weber Company purchases $52,200 of raw materials on account, and it incurs $62,200 of factory labor costs. Supporting records sh
netineya [11]

Answer:

This problem requires us to pass journal entry to assign overhead to the Assembly and Finishing Departments.

We know that overhead is allocated on estimation basis through applied overhead account. The basis of assignment is given in the question. The overhead will be assigne/recorded in relevant department work in process cost account. The journal entry is given below.

Debit Assembly WIP Account                         $ 70,720

(44,200*1.6 = 70.720)

Debit Finishing WIP Account                           $ 28,000

((62,200-44,200)*1.6 = 28,800)

Credit Factory Overhead applied Account    $ 99,520

3 0
3 years ago
Caroline pays 15% taxes on dividends and capital gains and 35% taxes on ordinary income. Three years ago, she purchased 100 shar
Lilit [14]

Answer:

The answer is: B) $175

Explanation:

Caroline made an income of $500 from this transaction and it should be taxed at ordinary income rate (35%).

Caroline´s taxes = $500 x 35% = $175

In order for Caroline to be taxed at 15% (capital gains rate) she should have sold a capital asset that she had owned for more than one year, but in this case she didn´t sell any stock.

8 0
3 years ago
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