If you are constructing a portfolio to cover the education expenses of your child and you expect that he/she graduates from college in 15 years, then the time horizon of your portfolio should be 15 years since it should cover all the expenses until your child graduates. If you start a little earlier and expect your child to graduate in 20 years, the time horizon will be 20 years, or if you start a little later and expect your child to graduate in 10 year, then the time horizon is 10 years.

7 0

3 years ago

"Gamboa, Inc. sold 100 selfie sticks for $25 each. If the selfie sticks had an average cost of $1 to produce, how much profit di

IRISSAK [1]

Answer:

$2400

Explanation:

Average cost is the ratio of total cost of production to the total number of units produced, it is the sum of both the average fixed cost and the average variable cost. The average cost is given by the formula:

Average cost = Total cost / number of units.

Given that:

The total number of units produced = 100 selfie sticks, Average cost = $1 and Price of each selfie stick = $25

From Average cost = Total cost / number of units.

Substituting gibes:

$1 = Total cost / 100 selfie stick

Total cost = $1 × 100 = $100

Total cost = $100

Revenue = Price per item × Number of items

Revenue = $25 × 100 = $2500

Profit = Revenue - Total cost

Profit = $2500 - $100 = $2400

Total cost = $2400

5 0

3 years ago

For the most recent year, Camargo, Inc., had sales of $546,000, cost of goods sold of $244,410, depreciation expense of $61,900,

Dovator [93]

Answer:

Explanation:

As we know that time interest earned ratio = Income before interest and taxes / interest expense.

Sales = 546000

less: cost of goods sold = (244410)

Gross profit 301590

Less: expenses

Depreciation expense =( 61900 )

Profit before interest and taxes 239690

Less: tax

(239690 * 23%) = (55128)

Profit 184562

Profit - Retained earning Addition = Interest

184562 - 74300 = 110262.

Interest earned ratio = 239690 / 110262 = 2.17 times

7 0

4 years ago