Answer:
D) increase at a faster rate than the costs associated with those sales.
Explanation:
If the break even point was reached during the 20th day of the month, then any revenue generated during the remaining 10-11 days will increase net profits. The amount of net profit increase will be determined by the contribution margin of each service provided. The contribution margin = net sales - variable costs. Since the fixed costs have already been covered, the contribution margin will be equal to the net profit.
Answer:
$880.31
Explanation:
Here for computing the new price of the bond we use the present value formula i.e. to be shown in the attachment
Given that,
Assuming Future value = $1,000
Rate of interest = 8.6% ÷ 2 = 4.3%
NPER = 8 years × 2 = 16
PMT = $1,000 × 6.5% ÷ 2 = $32.50
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the new price of the bond is $880.31
Answer:
number of products to be purchased
Explanation:
A purchase order is prepared by a customer and addressed to a trader. The document instructs the trader to supply the customer with the goods stated in the purchase order document.
Before a customer writes the purchase order, an agreement is made on the quantity to be ordered. The trader has to confirm that they have the required quantity in the stores, or it will be availed within a reasonable time.
The price is agreed at the quotation stage. The customer first sends an inquiry, which the customer responds to with a quotation.
Answer and Explanation:
The computation is shown below:
a. For the maximum amount that spend each month on mortgage payment is
= Gross annual income ÷ total number of months in a year × mortgage payment percentage
= $39,600 ÷ 12 months × 28%
= $924
b. . For the maximum amount that spend each month on total credit obligatons
= Gross annual income ÷ total number of months in a year × mortgage payment percentage
= $39,600 ÷ 12 months × 36%
= $1,188
c. Now the maximum amount spend for all other debt is
For monthly mortgage
= $924 × 70%
= $646.8
And, for mortgage debt
= $1,188 × 70%
= $831.60
Answer:
Answer Illustration : Opportunity Cost of producing Wine is lesser in France, Opportunity Cost of producing Sweaters is lesser in Tunisia. So, France has comparative advantage in Wine, Tunisia in Sweater.
Explanation:
Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.
Opportunity Cost of producing Sweaters & Wine in France & Tunisia are quantities of other goods (Sweaters or Tunias) sacrifised while choosing either. Sweater Opportunity Cost - Wines sacrifised, Wine Opportunity Cost - Sweaters sacrifised.
The country has a comparative advantage in a good if it can produce it with relatively less opportunity cost (in terms of other good sacrifised) than other country.
Ex : Production Possibilities
Wine Sweater Trade off (Wine :Sweater)
France 10 5 1:0.5 or 2:1
Tunisia 8 24 1:3 or 0.33:1
- France produces Wine with lesser opportunity cost (sweater sacrifised) than Tunisia [0.5 sweater < 3 sweaters] ; it has comparative advantage in Wine.
- Tunisia produces Sweater with less opportunity cost (wine sacrifised) than France [ 0.33 wine < 2 wines] ; it has comparative advantage in Tunisia
