Answer:
(a)
Mathematical Equation for break-even
F = QP - QV
Where
F = fixed cost
Q = Break-even quantity
P = Selling price
V = Variable cost
F = Q ( P - V )
Q = F / ( P - V )
Q = $327,030 / ( $630 - $300 )
Q = $327,030 / $330
Q = 991 units
(b)
Contribution Margin = Price per unit - Variable cost per unit
Contribution Margin = $630 - $300 = $330
Break-even Point in Units = Fixed Cost / Contribution margin per unit
Break-even Point in Units = $327,030 / $330 = 991 units
Explanation:
Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.
Contribution per unit method use the contribution of each unit to calculate the break-even point.
With the price increase in tutoring from $5 to $15, producer surplus increases by <u>$10</u>.
<h3>What is producer surplus?</h3>
Producer surplus is the additional benefit that the tutors receive. It can be computed by determining the difference between old tutoring price, $5, and the new market price of $15. The implication is that while tutors are willing to accept $5, the new marketing price has made it possible for them to increase their surplus by $10 ($15 - $5).
Thus, the producer surplus increases by $10 to show the increased benefit that suppliers receive for selling their services in the marketplace.
Learn more about producer surplus at brainly.com/question/7622454
Answer:
1. a. 4.081%
2. c. $23,536.36
Explanation:
1. Periodic rate=(4.4%/4) = 1.1%
EAR=(1+APR/m)^m-1
where m=compounding periods
= (1+0.044/4)^4-1
= 1.011^4 - 1
= 1.04473133864 - 1
= 0.04473133864
= 4.47%
EAR=(1+APR/m)^m-1
where m=compounding periods
=(1+0.04/365)^365-1
= (1+0.00010958904)^365 - 1
= 1.00010958904^365 - 1
= 1.04080849272 - 1
= 0.04080849272
= 4.081%
2. A=P(1+r/365)^365*n
where A=future value, P=present value, r=rate of interest, n=time period.
= 22000*(1+9%/365)^(9/12*365)
= $23,536.36
Answer:
d. The determination of the principal.
Explanation:
An independent contractor is one who is not bound by any affiliations to either a company, a country or an ideology.
He is hired to do a specific work and based on his contract, paid after, before or during the work.
The determination of the principal in no way affects his work as he isn't bound to the company as an employee and is a free agent. He is a professional who is not slack in his work and works efficiently to earn his pay
Answer:
The correct answer is $105,000.
Explanation:
According to the scenario, the given data are as follows:
Cost of the plane = $85,000
Modification cost = $20,000
So, we can calculate the net cost of the plane by using following formula:
Net cost of the Plane = Cost of the plane + Modification cost
By putting the value, we get
Net cost of the plane = $85,000 + $20,000
= $105,000
