Answer:
a. Break-even point in sales units = 350,000 units
b. Break- even point in sales units to achieve a target profit of $400,000 = 430,000 units
Explanation:
a. Break-even point in sales units = Fixed cost ÷ Contribution margin per unit
= $1,750,000 ÷ $5
= 350,000 units
Working note:- Contribution margin = $15 - $10 = $5
b. Break- even point in sales units to achieve a target profit of $400,000 = fixed cost + Targeted profit ÷ Contribution margin per unit
= $1,750,000 + $400,000 ÷ $5
= $2,150,000 ÷ $5
= 430,000 units
Answer:
C. All else being equal, the growth rate of the dividends is greater than 2%
Explanation:
The formula to calculate the fair price of a stock with a constant growth in dividends is as follows,
- P = D1 / r-g
- Where D1 is the dividend next period
- r is the required rate of return
- g is the growth rate in dividends
- P = 1.5 / 0.1 - 0.02 = 18.75
- We are taking 1.5 as D1 as it is the dividend per share DeepMind will pay next year.
So, we will be willing to pay more than 18.75 if the fair price per share today is greater than 18.75. We check all the 3 options.
A. say the required rate is 10.1%
- P = 1.5 / (0.101 - 0.02) = 18.52
- So if the required rate of return increases from 10%, the fair price per share is falling and we will be willing to pay less than 18.75 per share.
B. P = 1.2 / (0.1 - 0.02) = 15
- If D1 = 1.2,the fair price per share will be 15 which is less so we will not be willing to pay more than 15 for such share.
C. Say the growth rate in dividends is 2.1%
- P = 1.5 / (0.1 - 0.021) = 18.99
- The fair price per share increased to 18.99 if the growth rate in dividend increases by 0.1 percentage point. Thus, C is the correct answer
Answer:
gain surplus from paying a lower price
Explanation:
An effective price ceiling will cause consumers to "gain surplus from paying a lower price."
This is based on the idea that an effective price ceiling usually leads to prices being below the equilibrium price or equates to a lower price.
At this point, the buyers demand more of the products, while the sellers have a lower incentive to produce more. And therefore, the quantity demanded will exceed the quantity supplied.
Hence, consumers gain excess (more demands) by paying a lower price.
Answer:
Correct answer is (a). adding a significant buffer to each activity
Explanation:
Realistic time estimates for project is an essential skill required by project management team to estimate required time for a component or whole project to be completed. It is expressed in person hour. Adding a significant buffer to each activity in project management does not required by team to estimate the time required to complete project.
Basically saying when a relationship between 2 people is boosted, there is a balance between them. The more equal the rewards, the more permanent the relationship.
