Answer:
Consider the following calculation
Explanation:
Yield to maturity is not given here. So we assume that Yield to maturity is 10%.
Present value of interest payment :
PV = A*PVIFA (n= 40,i =10%)
= 170*9.7791
= 1662.45
Present value of principal payment at maturity
PV = FV*PVIF (n= 40,i =10%)
= 1000 * .0221
= 22.10
Current price of bond = 1662.45+22.10
= $ 1684.55
Answer:
Explanation:
What is given:
Demand Prob Cumulative Prob
5 0.25 0.25
10 0.45 0.70
15 0.20 0.90
20 0.10 1.00
Cost of underage or profit lost, Cu = Selling price - Cost per dozen = 10 - 6.35 = 3.65
Cost of overage or cost of a lost sale, Co = Cost per dozen - Salvage value = 6.35 - 2 = 4.35
The critical fractile CF = Cu / (Co + Cu) = 3.65 / (4.35 + 3.65) = 0.456
For the order quantity to become optimal it shoud be greater than or equal to the CF.
Let's see when this happens:
Demand (dozens) Prob Cumulative Prob
5 0.25 0.25 < 0.456
10 0.45 0.70 > 0.456
15 0.20 0.90
20 0.10 1.00
This hapeens for 10 dozens of order size.
Answer:
The carrying value of the bonds immediately after the first interest payment is $434,300.
Explanation:
Face value of the bond = $440,000
Proceeds from bond issue = $434,000
Discount on bond payable = Face value of the bond - Proceeds from bond issue = $440,000 - $434,000 = $6,000
Total number of seminual = Number of years of bond maturity * Number of semiannual in a year = 10 * 2 = 20
Discount amortizaton per semiannual = Discount on bond payable / Total number of seminual = $6,000 / 20 = $300
Carrying value after first interest payment = Proceeds from bond issue + Discount amortizaton per semiannual = $434,000 + $300 = $434,300
Therefore, the carrying value of the bonds immediately after the first interest payment is $434,300.
penetration pricing may follow skimming pricing. the skimming pricing would help recoup initial research and development costs; increase market share.
price skimming sets charges better to draw customers maximum interest in the services or products to maximize brief-time period profits. Penetration pricing uses decreased prices to build a customer base for brand new services or products.
Penetration Pricing is a pricing approach in which the rate set via the firm is low first of all, with the purpose to appeal to more and more clients. Skimming Pricing manner a pricing approach in which the company set a high price for the product at its advent level for you to acquire the most income. Penetrate the market.
Charge skimming unit prices higher to draw clients most interested in the products or services to maximize quick-term income. Penetration pricing uses lower prices to construct a consumer base for brand new services or products.
Learn more about skimming pricing here brainly.com/question/16040179
#SPJ4
Answer:
a. $40,000
b. $200
Explanation:
The computation of break-even point is shown below:-
Break-even Point (Q) = TFC ÷ (Price - AVC)
Now we will put the values into the above formula.
a. Break even point = $100,000 ÷ ($10 - $7.5)
= $100,000 ÷ 2.5
= $40,000
b. Break even point = $600,000 ÷ ($15,000 - $12,000)
= $600,000 ÷ $3,000
= $200
Therefore for computing the break even point we simply applied the above formula.
