Answer:
As the contibution of the product is positive the company shoudl continue to produce it in the short-term
If the brand is discontinued then, as the fixed csot are common they will bean additional burden for the other brands. CUrrently Brand A covers most of theri allocated fixed cost
Removing it will decrease the income by the amount of their contribution
$220,645,1
They should be continued.
Explanation:
contribution margin per widget:
310 - 238 = 72
contribution margin ratio:
72 / 310 = 0,232258064516129
Contribution at 950,000 sales:
950,000 x 0.232258 = 220645,1
Answer:
$2,385,086
Explanation:
To answer this question, we need to use the present value of an ordinary annuity formula:
Where:
- A = Value of the annuity
- i = interest rate
- n = number of compounding periods
Because the interest rate is annual, it is convenient to convert it to a monthly rate.
4.5% annual rate = 0.37% monthly rate.
The number of compounding periods will be = 12 months x 30 years
= 360 months
Now, we simply plug the amounts into the formula:
You will need to have saved $2,385,086 if you plan to retire under the aforementioned circumstances.
Answer:
The Pearson's cost of common equity is 16.00%
Explanation:
For computing the cost of common equity, following formula should be used which is shown below:
WACC = (Equity portion × total cost of equity) + (debt portion × total cost of debt) × (1 - tax rate)
11.50% = (0.55 × total cost of equity) + (0.45 × 0.10) × (1 - 0.40)
11.50% = (0.55 × total cost of equity) + 0.045 × 0.60
11.50% = (0.55 × total cost of equity) + 0.027
11.50% - 2.70% = (0.55 × total cost of equity)
8.80% ÷ 0.55 = total cost of equity
So, total cost of equity = 16.00%
Hence, the Pearson's cost of common equity is 16.00%
Answer: Reminder Advertising
Explanation:
The reminder advertising is referred to as or known as the marketing strategy that typically includes brief messages that are sent with aim or objective of reminding the targeted customer or consumer group about the commodity or product or their service. This advertising is used by the business which have already invested a considerable amount of resources in promoting the product or the service but still want to maintain their competitiveness.
