Answer:
D) $29,600
Explanation:
The mixed cost formula gives the relationship between the cost and the level of activities. It shows the cost as a function of the activity level.
The formula also shows that the cost is made up of a fixed element ($16,000) and a variable element ($3,40X).
Hence at an activity level of 4000 units,
Y = $16,000 + $3.40(4000)
= $29,600
Answer:
Unsuccesful outcomes
Negative Respponses from others
Answer: Yes. AudioCable should buy a new equipment
Explanation:
Audiocables Inc. without new equipment:
Selling price: $1.40
Variable cost: $0.50
Fixed cost: $14,000
Sales: 30000 units
Total cost = Fixed cost + Variable cost
= $14000 + ($0.50 × 30000)
= $14000 + $15000
= $29000
Revenue = Sales × Selling price
= 30000 × $1.40
= $42000
Profit = Revenue - Total Cost
= $42000 - $29000
= $13000
Audiocables Inc. with new equipment:
Selling price: $1.40
Variable cost: $0.60
Fixed cost: $14,000 + $6000 = $20000
Sales: 50000 units
Total cost = Fixed cost + Variable cost
= $20000 + ($0.60 × 50000)
= $20000 + $30000
= $50000
Revenue = Sales × Selling price
= 50000 × $1.40
= $70000
Profit = Revenue - Total Cost
= $70000 - $50000
= $20000
From the calculations made, AudioCable buy a new equipment as profit generated is more.
Answer:
value of the bond = $2,033.33
Explanation:
We know,
Value of the bond, ![B_{0} = [I * \frac{1 - (1 + i)^{-n}}{i}] + \frac{FV}{(1 + i)^n}](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5BI%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%20i%29%5E%7B-n%7D%7D%7Bi%7D%5D%20%2B%20%5Cfrac%7BFV%7D%7B%281%20%2B%20i%29%5En%7D)
Here,
Face value of par value, FV = $2,000
Coupon payment, I = Face value or Par value × coupon rate
Coupon payment, I = $2,000 × 6.04%
Coupon payment, I = $128
yield to maturity, i = 6.1% = 0.061
number of years, n = 15
Therefore, putting the value in the formula, we can get,
![B_{0} = [128 * \frac{1 - (1 + 0.061)^{-7}}{0.061}] + [\frac{2,000}{(1 + 0.061)^7}]](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%200.061%29%5E%7B-7%7D%7D%7B0.061%7D%5D%20%2B%20%5B%5Cfrac%7B2%2C000%7D%7B%281%20%2B%200.061%29%5E7%7D%5D)
or, ![B_{0} = [128 * \frac{1 - (1.061)^{-7}}{0.061}] + [\frac{2,000}{(1.061)^7}]](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B1%20-%20%281.061%29%5E%7B-7%7D%7D%7B0.061%7D%5D%20%2B%20%5B%5Cfrac%7B2%2C000%7D%7B%281.061%29%5E7%7D%5D)
or, ![B_{0} = [128 * \frac{0.3393}{0.061}] + 1,321.3635](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B0.3393%7D%7B0.061%7D%5D%20%2B%201%2C321.3635)
or, ![B_{0} = [128 * 5.5623] + 1,321.3635](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%205.5623%5D%20%2B%201%2C321.3635)
or, 
$711.9738 + 1,321.3635
Therefore, value of the bond = $2,033.33
