Answer:
a. Income before advertising budget increase:
= Contribution margin - Fixed costs
= (38 * 3,600) - 79,000
= $57,800
Income after advertising budget increases:
= Sales - Variable expenses - Fixed expenses
Sales = (3,600 + 100 units) * 95 per unit
= $351,500
Variable expenses = 60% * 351,500
= $210,900
Fixed expenses = 79,000 + 8,400 advertising
= $87,400
Income = 351,500 - 210,900 - 87,400
= $53,200
b. Income decreased with the increase in advertising so<u> Advertising budget should not be increased. </u>
Answer:
$6,800
Explanation:
Calculation for How much of a tax deduction will Kaye be able to deduct (assume 10% floor for deduction)
Tax deduction=$11,600-(10%*$48,000)
Tax deduction=$11,600-$4,800
Tax deduction=$6,800
Therefore the amount of tax deduction that Kaye will be able to deduct (assume 10% floor for deduction) is $6,800
Answer:
Substitutes
Explanation: A Substitute is a term used to describe a replacement for another,it is used to describe two or more items or materials or things that perform similar Activities and roles.
BOTH THE HUMAN WORKERS AND ROBOTS CAN BOTH BE ENGAGED TO ATTACH THE PARTS,WHICH MEANS IN THE ABSENCE OF ONE THE OTHER CAN CARRY OUT THE RESPONSIBILITY OF THAT ONE.
I’m going to go with b. Will be considered in the decision making process.
I looked up the definition of criterion and it means a principle or standard which maybe judged or decided. It’s not the ONLY thing that’s required.
Answer:
A Bond's current market value represented by 
is the present value of a bond as on today. Present value of a bond is it's future cash flows in the form of coupon payments and principal repayment discounted at investor's expectation in the market also referred to as Yield to maturity(YTM).
Present value of a bond is given by the following equation,
where C= Annual coupon payments
YTM = Yield to maturity/ cost of debt/ market rate of return on similarly priced bonds
RV = Redemption value of bond
n = number of years to maturity
<u>a. A bond's coupon rate is higher than it's yield to maturity, then the bond will sell for more than face value.</u>
Hence, if the company pays more interest than what is paid in the market on similarly priced bonds, such bonds shall sell at more than their face value.
<u>b. If a bond's coupon rate is lower than it's yield to maturity, then the bond's price will increase over it's remaining maturity.</u>
Similarly, if a bond pays lower rate of interest than the market rate of interest on similarly priced bonds, the bond shall sell at lower than it's face value and the price will increase over the remaining life of such bonds.
