When working with compressed air what psi should you reduce to if using the compressed air for cleaning?
2 answers:
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Answer:
break even rate = $31000
ultra break even point = $62000
Explanation:
given data
total fixed costs = $1,612,000
solution
WE FIND HERE FIRST contribution margin that is
contribution margin for regular per unit = $20 - $8
contribution margin = $12
and
contribution margin for ultra = $24 - $ 4
contribution margin for ultra = $20
so if 1 unit of regular is sold
2 unit of ultra will sold here
so
contribution margin is here
contribution margin = ( $12 × 1 )+ ( $12 × 2 )
contribution margin = $52
and
break even point at commposite rate = total fix cost ÷ contribution margin rate at commposite rate
so
break even rate =
break even rate = $31000
and
ultra break even point = 31000 × 2
ultra break even point = $62000
Answer:
b. $35.02
Explanation:
The first dividends will be calculate by multiplying by the grow rate and bring them to present value:
first year:
D0 x (1+g)
1.75 x 1.13 = 1.977500
Then we calcualte the present value:
1.9775/1.12 = 1.7656
second year:
D1 x (1+g)
1.9775 x (1.13) = 1.7656
PV: 1.7814
Finally,, we calcualte the present value of the next dividends using the dividend grow model
We calcualte next year dividneds:
D2 x (1+g) = D3
1.9775 x 1.06 = 2.368650
g = 6%
and return 12%
39.47749167
then, we calcualte the present vale:
PV = 31.4712
Finally, we add all these values
1.7656 + 1.7814 + 31.4712 = 35,0182 = 35.02
This will be the estimate current stock price.