Answer:
Net income to be earned = $58,500
Explanation:
The net income to be earned can determined as follows:
<em>Net income = (sales value - Variable costs) - Fixed costs</em>
With an increase in selling price by 10%, the total sales value would now be
Total sales value = 110% × 315,000 =$346,500
Net income therefore would be
= (346,500 - 218,000) - 70,000
= $58,500
Not that the fixed cost will not change because it is independent of volume and also the variable cost has been stated to remain the same.
Answer:
B. order priority provisions
Explanation:
When investors want to purchase municipal bonds in the primary markets, it is important for the issuer to prioritise orders from investors in a bond offering.
The underwriter must follow the issuer's priority of orders in allocating purchase orders for municipal bonds.
So in a competitive municipal syndicate when a customer asks for order priority provisions, it must be provided by the dealer.
This shows transparency of the process to the investor as he now knows when each order will be filled.
Answer: Opportunity cost of returning to college next year is $1,000,000.
Explanation: Opportunity cost is the cost of the next best alternative sacrificed or foregone. When the athlete chooses to join college he is sacrificing his income that could be earned from playing the game. The player has the option of playing for the minor league baseball team for $1,000,000 or for European professional football team for $500,000. The person thus has a choice between playing for the minor league baseball team (since it is the highest paying) or going to college. Thus the opportunity cost of going to college will be $1,000,000.
Answer:
$20,000 premium is amortized at the end of the first year.
Explanation:
Straight line amortization:
premium amortized = Premium / number of years
= ($5,200,000 - $5,000,000) / 10 years
= $200,000 premium / 10 years
= $20,000
Therefore, $20,000 premium is amortized at the end of the first year.
