Acquired $30,000 cash from the issue of common stock. Purchased inventory for $15,000 cash. Sold inventory costing $9,000 for $2
1 answer:
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Answer: The correct answer is "B. $10,000; 4%; four years".
Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is <u>$10000,</u> the coupon rate is <u>4%,</u> and the term of this bond is <u>four years.</u>
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Explanation: The maturity of the bond is at 4 years.
Its future value or face value is 10000.
The coupon rate is equal to x 100
So Coupon rate = x 100 = 4%
Answer:
BEP 2016: $ 1,700,000
BEP 2017:
under proposition a)
contribution margin:
(2,310,000 * 1.25 - 924,000) / 2,310,000 * 1.25 = 1,500,000
under porposition b)
fixed cost decrease by: 197,000 - 40,000 = 157,000
contribution margin decrease by 5% to 55%
(1,020,000 - 157,000) / (0.6 - 0.05) = 1,569,090.90
under proposition c)
We distrubute the same cost but now 50% is fixed and 50% variable:
1,944,000 x 50% = 927,000
contribution margin:
2,310,000 - 927,000 = 1,383,000
ratio: 1,383,000 / 2,310,000 = 0.5987
BEP
927,000 / 0.5987 = 1,548,354.77
Explanation:
Break even point formula:
Where:
Sales: 2,310,000
Variable cost: 924,000
Contribution: 2,310,000 - 924,000 = 1,386,000
Contribution ratio: 1,386,000 / 2,310,000 = 0.6
Fixed cost: 1,020,000
BEP 2016
1,020,000 / 0.60 = 1,700,000