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3 years ago

5

What is the minimum price per unit that would produce a positive contribution margin? if required, round your answer to two deci

mal places?

1 answer:

nikdorinn [45]3 years ago

8 0

You need to provide figures for an answer to be calculated.

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Successful new-product development requires the company to establish an effective organization for managing the development proc

Rama09 [41]

Answer:

a. True

Explanation:

The success of a new product development needs to establish effective organization for the management of the development process. Organizations should choose product managers, departments for new products, they should incorporate venture teams, and many more. Some of the important factors are companies should adopt multi functional teams and develop new multiple concepts for the products.

4 0

3 years ago

A financial institution has entered into an interest rate swap with company X. Under the terms of the swap, it receives 10% per

sergij07 [2.7K]

Answer:

The loss of the financial institution is $413,000

Explanation:

Let's say that after 3 years the financial institution will receive:

0.5 * 10% of $10million

= 0.5 * 0.1 * 10000000

= $500,000

Then, they will pay 0.5 * 9% of $10M

= 0.5 * 0.09 * 10000000

= $450,000

Therefore, their immediate loss would be $500000 - $450000

= $50000.

Let's assume that forward rates are realized to value the rest of the swap.

The forward rates = 8% per annum.

Therefore, the remaining cash flows are assumed that floating payment is

0.5*0.08*10000000 =

$400,000

Received net payment would be:

500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:

Year 3=$50,000

Year 3.5=$100,000

Year 4 = $100,000

Year 4.5= $100,000

Year 5 = $100,000

Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000

4 0

3 years ago

Since 1969, economic growth in ______ has been greater than in ______ because ______.

sashaice [31]

Since 1969, the economic growth in Hongkong has been greater than in the United States. Although both have been showing improvement and development when it comes to economic growth, Hongkong gave their best by devoting a bigger fraction of its resources to accumulating capital. Hongkong's production possibilities then have expanded more quickly. By 2009, the performance of Hongkong's economy has been promising for statistics states that the production possibilities of per person in the said country had reached 94 percent than in the United States. Another proof that Hongkong has been doing good is, it is considered as one of the world's leading financial centers. It boasts of its low taxation, almost free port trade and well established international financial market through its service-oriented economy. ‬

5 0

3 years ago

Atlantic Corporation reported the following amounts at the end of the first year of operations: common stock $200,000; sales rev

Hoochie [10]

Answer:

D. Retained earnings are $ 280,OOO and expenses incurred totaled $ 520,000.

Explanation:

We need to consider the accounting equation to determine the amount of retained earnings at end of year.

The accounting equation being:

Assets = Liabilities + Stockholders' Equity

$ 600,000 = $ 320,000 + Stockholders' equity

so the Stockholders Equity is $ 280,000

For determining expenses, we use the following equation:

Revenue - Expenses = Net Income

Being the first year of operations, the net income equals to the retained earnings

$ 800,000 - Expenses = $ 280,000

So expenses are $ 800,000 - $ 280,000 = $ 520,000

7 0

4 years ago

Consider public policy aimed at smoking.A. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If

Ede4ka [16]

Answer:

A. Elasticity measure the change in quantity demanded that comes with a change in price. The elasticity formula is;

Elasticity = %change in quantity demanded / % change in price

0.4 = 20% / %change in price

%Change in price = 20%/0.4

= 0.5

= Increase price by 50%

= 50% * 5 = $2.50

<em>Government should increase the price by $2.50 to make it $7.50. </em>

B. Effect is larger 5 years from now

Effect will be larger 5 years from now than 1 year from now. This is because in 5 years the high prices would have forced smokers to look for more alternatives to smoking than in a year.

C. Teenagers have less income.

Teenagers likely have a higher price elasticity because they do not have the income to support an increase in the price of cigarettes so when the prices increase, they buy less than adults who are more likely to have an income stream.

3 0

3 years ago