Answer:
correct option is (A) 16,500 units.
Explanation:
given data
shirts sold = $7.50
variable cost = $2.25
after tax net income = $5,040
selling price =$10
solution
we get here first fixed cost that is
Break even sales units = Fixed costs ÷ Contribution per unit .............1
put here value
20000 = 
Fixed costs = $105000
and
Fixed costs coming year will be
Fixed costs coming year = ($105000 × 1.10)
Fixed costs coming year = $115500
and
Variable cost = $2.25 + ($2.25 × 
)
Variable cost = $3
so that Contribution margin will be
Contribution margin = Sales price - Variable cost ............2
Contribution margin = $10 - $3
Contribution margin = $7
and
break even sales units is
break even sales = 
break even sales = 16500 units
so correct option is (A) 16,500 units.
To buy a certain security using dollar cost averaging, an investor must make regular payments (let's say monthly) of a set dollar amount (let's say $100 per month).
<h3> What is dollar cost averaging?</h3>
The practice of investing a set dollar amount on a regular basis, independent of the share price, is known as dollar cost averaging. It's a terrific method to form a disciplined investing habit, increase your investment efficiency, and possibly reduce your stress—as well as your expenses.
Say you put $100 away each month. Your $100 will buy fewer shares when the market is up, but more shares when the market is down. While compared to what you would have paid if you had purchased all of your shares at once when they were more costly than the average, this technique may eventually lower your average cost per share.
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Answer:
Risk and Return
1. Joe is an average investor. His financial advisor gave him options of investing in stock A, with a σ of 12%, and stock B, with a σ of 9%. Both stocks have the same expected return of 16%. Joe can pick only one stock and decides to invest in stock B.
Good Financial Decision?
Yes
No
2. Marcie works for an educational technology firm that recently launched its employee stock option plan (ESOP). Marcie allocated all her investments in the ESOP.
Good Financial Decision?
Yes
No
3. rin wants to invest in a hedge fund that has had a very strong performance track record. The hedge fund has given its investors a return of over 60% for the past five years. Although Erin is tempted to put her money in the fund, she decides to conduct due diligence on the hedge fund’s assets, because she is aware that past performance is no guarantee of future results.
Good Financial Decision?
Yes
No
Explanation:
1. Joe's decision to invest in stock B is a good financial decision. Since both investments have the same returns, the decision on which investment to take shifts to the standard deviation of the returns, which specifies the variability of the returns. Invariably, the investment with less standard deviation should win the vote. Therefore, Joe's decision is a good financial decision because investment in B has a standard deviation of 9% unlike A's 12%.
2. Putting all eggs in one market as Marcie had done by allocating all her investments in the ESOP is not a good financial decision, theoretically. It is always best to spread the risks, though higher-yielding investments (returns) bear higher risks.
3. The decision of Erin to conduct due diligence on the hedge fund's assets, despite its past performance is a good financial decision. Due diligence reveals some behind-the-scene information that are instrumental in making sound business decisions. Who are the present managers of the fund? What systems are in place in the entity to guarantee similar future performance, all things being equal? What market's sentiments and information are available for consideration? These questions, and many others can be answered through a due diligence. Surely, "past performance is no guarantee of future results."
The correct answer is false
