Answer:
Level of sales in dollars in order to generate a profit of $54,000 Fixed cost + Target profit/Contribution per unit $270,000 + $54,0000/0.75
= $432,000
Number of units to be sold
= Level of sales/Selling price
= $432,000/$36
= 12,000 units
The correct answer is A
Explanation:
In this case, we need to calculate level of sales in dollars, which is fixed cost plus target profit divided by contribution margin ratio. Then, we will calculate no of units to be sold, which is the level of sales divided by selling price.
To annotate something is to look over. You need to re-check your mail before you send it off. Make sure the address is right. Make sure everything on there is correct before you send it off. The people that deliver the mail need to make sure they are giving the right person the right mail.<span />
Answer:
C. are unaffected by the degree of operating efficiency in a given budget period.
Explanation:
Fixed over head costs or indirect costs are cost that do not vary with the level of out put. They are essential cost required to manage a business.
These costs are the same months by Months and are needed for the smooth running of the business. They are also unaffected by the degree of operating efficiency in a given budget period.
Examples of fixed overhead are rents, salaries, depreciation , insurance and taxes. It should however be noted that if there is an increase in sales compared to the budgeted sales of the company, there could be an increase in fixed overhead cost due to additional employees and administrative staff.
Answer:
the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38
Explanation:
The calculation of the estimated price of the stock in 5 years is given below:
= 5th Year dividend ÷ (Required return - Growth Rate)
Dividend at year 5 should be
=Dividend at year 0 × (1 + Growth Rate)^5
= $8.69 × (1.061)^5 ÷ (0.11.5 - 0.061)
= $216.38
Hence, the estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38
Answer:
recessionary gap = 8 billion
so correct option is c) $8 billion
Explanation:
given data
MPC = 0.80
GDP = $40 billion
to find out
the size of the recessionary gap
solution
we get here first Multiplier that is
Multiplier = 
..................1
Multiplier = 
Multiplier = 5
so recessionary gap will be
recessionary gap = 
................2
recessionary gap = 
recessionary gap = 8 billion
so correct option is c) $8 billion
