Answer:
The annual fixed expenses associated with the textbook is $301,000.
Explanation:
Selling Price = $27
Variable Cost = $20 per unit
Contribution margin = $27 - $20 = $7 per unit
Break-even = 43,000 units
Fixed Cost = ?
Use Break-even formula to calculate fixed cost
Break-even = Fixed cost / Contribution per unit
43,000 = Fixed cost / $7
Fixed Cost = 43,000 x $7
Fixed Cost = $301,000
Answer:
a) QXd = 300 - 2PX.
Inverse demand curve (PX = - QXd) => 2PX = 300 - QXd => 2PX/2 = 300/2 - QXd/2 ) => PX = 150 - QXd/2
b) In calculating consumer surplus, knowing maximum willingness to pay (WTP) is first (Price when Quantity demanded is 0)
PX = 150 - QXd/2
At Q = 0, P = 150
At Px = $45,
QXd = 300 - 2*45
QXd = 300 - 90
QXd = 210
Consumer surplus is the area of the triangle whose base = Quantity demanded and height is the difference between price and WTP
CS = 1/2 * 210 * (150 - 45)
CS = 22050/2
CS = 11025
c) At Px = $30
QXd = 300 - 2*30
QXd = 300 - 60
QXd = 240
CS = 1/2 * 240 * (150 - 30)
CS = 1/2 * 240 * 120
CS = 28800/2
CS = 14400
d. As the price of a good falls, Consumer surplus increases because of increase in distance between WTP and price.
Answer and Explanation:
Given that
There is a level of approx 8,000 in feb 2009
And there is a level of approx in mid 2018 is 24,500
Also there is 40 points
Now based on the above information
Average movement per day in both the cases would be
= 8,000 ÷ 365
= 21.92 point
And,
= 24,500 ÷ 365
= 67.12 points
So it would be more in 2018 as it represent 67.12 points i.e. more than 40 points
Answer:
The correct answer is r=(DIV1/P0)+g
Explanation:
The expected rate of return for a stock is usually the dividend yield added to capital gains yield.
Dividend yield is the percentage of the share's price that the company pays to shareholders as dividends and the formula is the dividends divided by the share price, hence in this scenario it DIV1/PO
On other hand,capital gains yield is the percentage increase of the share price over time. In other words, the share price growth rate,which is a market expectation of the company's performance.The g given in the question depicted this.
Without mincing words,the expected rate of return on the stock is dividends yield(DIV1/P0) plus the capital gains yield(g)
