Is there a specific form you need it answered in or
Answer:
c. 10.17%
Explanation:
we can use the future value formula:
future value = present value x (1 + r)ⁿ
- future value = $19,600,000
- present value = $8,200,000
- n = 9
$19,600,000 = $8,200,000 x (1 + r)⁹
$19,600,000 / $8,200,000 = (1 + r)⁹
(1 + r)⁹ = 2.390243902
⁹√(1 + r)⁹ = ⁹√2.390243902⁹√
1 + r = 1.101663943
r = 1.101663943 - 1 = 0.101663943 = 10.17%
Explanation:
Total Per Unit
Sales $ 337,500 $ 45
Less: Variable Cost $ 165,000 $ 22
Contribution margin $ 172,500 $ 23
Less : Fixed Cost $ 121,000
Profit $ 51,500
Sales Total = $ 45 * 7,500 Units
Variable Cost Total = $ 22 * 7,500 Units
Contribution Margin Total = $ 23 * 7500 Units
