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Lena [83]
3 years ago
10

Investor Palmer has a diversified portfolio consisting of equity and debt valued at $365,000 at the start of the year. During th

e year the portfolio returns $3,579 in dividends and $2,783 in interest income. The investor withdraws the interest income while reinvesting the dividends. At year-end the portfolio is worth $389,648. The investor's marginal tax bracket is 35%. Without compounding, what is the investor's return after taxes?
Business
1 answer:
garri49 [273]3 years ago
5 0

Answer:

The return after taxes is 7.9%

Explanation:

At the start of the year the portfolio is valued at $365,000.

At the end, his portfolio has returns by dividends ($3,579), interests ($2,783) and portolio's valuation (389,648-365,000=$24,648).

The tax is applied to the dividends and interests, as:

Tax = 0.35 * (3579+2783) = 0.35*6362 = $2,226.70

We can then calculate the investor's return as

R = profit after taxes / initial portfolio valuation

R = ((3579 + 2783 - 2226.70)+24648)/365000

R= 28,783.30 / 365,000 = 0.079 = 7.9%

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My answer is: Produce Product C first, then followed by Product A. to maximize contribution margin. Product B will not be produced since the maximum number of pounds has already been used in producing Products C and A.

<span> <span> </span><span><span> PER UNIT
</span> <span> PRODUCT                              A               B                C
</span> <span> SELLING PRICE                   80              62                81
</span> <span> VARIABLE EXPENSES
</span> <span> DIRECT MATERIALS            24             18                  9
</span> <span> OTHER VAR EXP.                 24             25.4             43.65
</span> <span> TOTAL VAR EXP                   48             43.4             52.65
</span> <span> CONTRIBUTION MARGIN    32             18.6             28.35
</span> <span> <span>CM RATIO </span>                            0.4             0.3                0.35
</span> <span> </span> <span>
COMPANY CAN SELL 800 UNITS OF EACH PRODUCT PER MONTH.
</span> <span> SAME RAW MATERIAL IS USED IN EACH PRODUCT.
</span> <span> MATERIAL COSTS 3 PER POUND W/ A MAX OF 5,000 POUNDS EACH MONTH
</span> <span> </span> <span>
PRODUCT      DM     <span>UNIT COST </span>        NO. OF LBS
</span> <span> A                      24            3                             8
</span> <span> B                      18            3                             6
</span> <span> C                        9            3                             3
</span> <span> </span> <span> PRODUCT NO. OF LBS/UNIT     MAX UNITS      TOTAL NO. OF LBS
</span> <span> A                       8                                800                    6400
</span> <span> B                       6                                800                    4800
</span> <span> C                       3                                800                    2400
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</span> <span> LIMITATION: 5,000 POUNDS PER MONTH ONLY.

</span></span></span><span> <span> </span><span><span> <span>required: </span>
</span> <span> <span>1. calculate the contribution margin per pound of the constraining resource for each product. </span>
</span> <span> 2. which orders would you advise the company to accept first, those for a, b, or c? which orders second? third?
</span> <span> </span> <span>
</span></span></span><span>PLS. SEE ATTACHMENTS FOR MY FULL COMPUTATIONS. </span>

5 0
3 years ago
An income statement for Tommy's Bookstore for the first quarter of the year is presented below: Tommy's Bookstore Income Stateme
Semmy [17]

Answer:

Contribution margin = $200,000

Explanation:

As per the data given in the question,

Contribution margin = Sales - Variable expense

Number of books = $880,000 ÷ $55

=16,000

Gross margin  = 340,000

Variable selling expenses = 16,000 × $6

=$96,000

Variable administrative expense = $880,000 × 5%

=$44,000

Total = $96,000 + $44,000

= $140,000

Contribution margin = $340,000 - $140,000

= $200,000

7 0
2 years ago
Joe's pizza hired a fourth worker, who made an additional ten pizzas per hour. Joe also discovered that the number of pizzas mad
azamat

Answer:

number of pizza per our = 10

number of worker = 4

number of pizza per our per worker =2.5

Explanation:

7 0
2 years ago
Pina Colada Corp. does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $Unresol
Bogdan [553]

Answer:

b. $2,616

Explanation:

Missing word <em>"Total receipts for February amounted to $46216. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes? O $2773 O "</em>$2616 O $2608 O It cannot be determined.

Sales tax = Total receipt * Tax rate

Sales tax = Total receipt * 6/106

Sales tax = $46,216 * 6/106

Sales tax = $2,616

So, the amount that must be remitted to the state for February's sales taxes is $2,616.

8 0
2 years ago
The Atlantic Company sells a product with a break-even point of 6,220 sales units. The variable cost is $83 per unit, and fixed
Varvara68 [4.7K]

Answer:

a. Sales price per unit = $118

b. Break-even point in sales units = 8,139

Explanation:

a. Determine the unit sales price. Round answer to nearest whole number. $fill in the blank 1

Break-even point in sales units = Fixed costs / (Sales price per unit - Variable cost per unit) …………….. (1)

Substituting the relevant values from the question into equation (1) and solve for Sales price per unit, we have:

6,220 = $217,700 / (Seles price per unit - $83)

6,220 (Seles price per unit - $83) = $217,700

(6,220 * Sales price per unit) - (6,220 * $83) = $217,700

(6,220 * Sales price per unit) - $516,260 = $217,700

(6,220 * Sales price per unit) = $217,700 + $516,260

(6,220 * Sales price per unit) = 733,960

Sales price per unit = 733,960 / 6,220

Sales price per unit = $118

b. Determine the break-even point in sales units if the company desires a target profit of $67,165. Round answer to the nearest whole number. fill in the blank 2 units

Break-even point in sales units = (Fixed cost + Targeted profit) / Seles price per unit - Variable cost per unit) …………….. (2)

Substituting the relevant values into equation (2), we have:

Break-even point in sales units = ($217,700 + $67,165) / ($118 - $83) = $284,865 / $35 = 8,139

3 0
2 years ago
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