Answer:
Accounting rate of return = 20.53%
Explanation:
<em>The accounting rate of return is the average annual income expressed as a percentage of the average investment.</em>
The simple rate of return can be calculated using the two formula below:
Accounting rate of return
= Annual operating income/Average investment
× 100
Average investment = (Initial cost + scrap value)/2
= 30,000/2= 15,000
Accounting rate of return = ( 3080/15,000) × 100
= 20.53%
Accounting rate of return = 20.53%
Answer:
Website
Annual Reports
Magazines
Newspaper
Television Advertisement
Explanation:
The company website are the reliable source for the information. These websites include information about the specific product details. Brent can easily get access to details about product design, their specification and details. There can be other website which provide reviews of products. Brent can access those website to observe the reviews of the product but since the reliability of these website can be questioned so its better not to trust everything you read.
When the general level of prices rises, the economy is experiencing inflation
Answer:
a) attached below
b) P( profit ) = TR(q) - TC(q)
c) attached below
d) -$5000 ( loss )
Explanation:
Given data:
Fixed Cost = $10,000
Material cost per unit = $0.15
Labor cost per unit = $0.10
Revenue per unit = $0.65
<u>a) Influence diagram to calculate profit </u>
attached below
<u>b) derive a mathematical model for calculating profit.</u>
VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit
VC = LC + MC
TC (q) = FC + ( VC * q )
TR (q) = R * q
P( profit ) = TR(q) - TC(q) ------------ ( 1 )
c) attached below
<u>d) If Cox Electrics makes 12,000 units of the new product </u>
The resulting profit = -$5000
q = 12
P = TR ( q ) - TC ( q )
= ( R * q ) - ( Fc + ( Vc * q ) )
= ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )
= -$5200
Answer:
D) a swap contract where pay the cash flows of the bond in exchange for dollars.
Explanation:
When an investor engages in foreign exchange hedge they are trying to reduce foreign exchange risk (risk associated with changes in foreign exchange rates). A foreign exchange swap contract is made between parties that agree to exchange a loan/bond issued in a foreign currency with a domestic (in US dollars) loan/bond of an equal value.
In other words, the company would need to exchange its foreign bond for a similar value domestic bond.