Answer:
The break-even point measured in sales dollars is $8
Answer:
A. 8.15
Explanation:
WACC is the firm's weighted average cost for the capital that is employed from different sources which includes common equity, preferred equity and debt.
In order to calculate WACC, the weighted average cost of each capital is added, so the formula becomes:
WACC = (E x %E) + (D x (1 - Tax) x %D) + (PE x %PE)
E = Common equity
D = Debt
PE = Preferred equity
%E = Common equity / total capital
%D = Debt / total capital
%PE = Preferred equity / total capital
Tax = Tax rate
<em>Interest on debt is a tax deductible expense therefore the interest rate is taken after accounting for tax in order to calculate WACC.</em>
<u>Calculation:</u>
Using the above formula we can calculate WACC
WACC = (11.25% x 55%) + (6.5% x (1-40%) x 35%) + (6% x 10%)
WACC = 0.0815 or 8.15%
When writing a message to express condolences, you should mention the loss tactfully, recognize the good qualities of deceased, assure the receiver of your concern, offer assistance, and <u>conclude on a reassuring note.</u>
Explanation:
Certain points that are to be kept in Mind when writing a Condolence Messages are:
- Don't unintentionally say the wrong thing in a sympathy message
- The Condolence message should be short and crisp
- In the message try to recall a funny memory of the deceased.
- In the message ,you should not simply sign rather mention your full first and surname.
- Don't mention any financial obligation of the deceased or offer any financial help
- Don't try to offer any other help like cooking a good meal
Thus we can say that ,When writing a message to express condolences, you should mention the loss tactfully, recognize the good qualities of deceased, assure the receiver of your concern, offer assistance, and <u>conclude on a reassuring note.</u>
Answer:
4.20 and normal good
Explanation:
The computation of the income elasticity of demand is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in income ÷ average of quantity income)
where,
Change in income would be
= Q2 - Q1
= 109,500 - 102,300
= 7,200
And, average of income would be
= (109,500 + 102,300) ÷ 2
= 105,900
Change in quantity demanded would be
= 4 - 3
= 1
And, average of quantity demanded would be
= ($4 + 3) ÷ 2
= 3.5
So, after solving this, the income elasticity of demand is 4.20
Since the elasticity comes in positive which means the good is a normal goods
Answer:
<u>Favourable Changes:</u>
Sales
Gross Profit
Operating Income
Interest Expense
Net Income
<u>Unfavourable Changes:</u>
Cost Of Sales
Selling Expenses
General Expenses
Other Revenue
Income Taxes
Explanation:
Observe Movement from 2018 results to 2019 results
Erie Corp
Vertical Analysis of Income Statement
2019 2018
Sales 1,397 1,122
Less Cost Of Sales 935 814
Gross Profit 462 308
<u>Less Operating Expenses</u>
Selling Expenses 154 121
General Expenses 88 77
Operating Income 220 110
<u>Less Non- Operating Expenses</u>
Other Revenue 4 7
Interest Expense 2 9
Income Taxes 134 66
Net Income 88 42