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Svetlanka [38]
3 years ago
12

Derst Inc. sells a particular textbook for $39. Variable expenses are $28 per book. At the current volume of 49,000 books sold p

er year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total:
Business
1 answer:
Liono4ka [1.6K]3 years ago
7 0

Answer:Annual fixed expenses = $ 539,000

Explanation:

Given;

break even point on books sold= $49,000

sales price per unit = $39

variable cost= $28

Using the formulae,

Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales

49,000   =Fixed cost / ( 39-28)

Fixed cost = 49,000  x 11

               = $ 539,000

Annual fixed expenses = $ 539,000

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Companies can use _____ analysis to predict income based on various changes in fixed or variable costs, selling price and volume
Marina86 [1]

Answer:

Constant or fixed cost

Explanation:

because companies are always set fixed money to their customers

4 0
3 years ago
What do you call the second year of high school?
Luba_88 [7]
The second year of high school is Sophomore year.
7 0
3 years ago
Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume. Th
Nataly_w [17]

Answer:

The total monthly fixed manufacturing cost is $328,000.

Explanation:

For 4000 units, The direct materials cost is $99.2 per unit, the direct labor cost is $45.5 per unit, the manufacturing overhead cost is $94.

For 5000 units, The direct materials cost is $99.2 per unit, the direct labor cost is $45.5 per unit, the manufacturing overhead cost is $77.6.

Total manufacturing overhead for 4,000 units

= 4,000\ \times\ 94

= $376,000

Total manufacturing overhead for 5,000 units

= 5,000\ \times\ 77.6

= $388,000

The variable cost per unit

= \frac{388,000\ -\ 376,000}{1,000}

= $12 per unit

Fixed costs

= Total cost - Total variable costs

= 388,000\ -\ (5,000\ \times\ 12)

= $328,000

5 0
3 years ago
What is an investment report that is given to potential investors called
tester [92]
Prospectus.

For example, when a company is preparing for an IPO, the prospectus will be given to potential investors (mom & pop, and sophisticated) to give them information on current financial status of the company, growth strategies, current shareholders, directors, etc.
7 0
3 years ago
Draw the tree for a put option on $20,000 with a strike price of £10,000. the current exchange rate is £1.00 = $2.00 and in one
telo118 [61]

Answer:

$ 0.000912 / pound

Explanation:

Current spot rate : 100 pound / $ or 0.01 $ / pound

In the next period the $ value of the pound can either increase or decrease by 15%

$ Risk-free rate = 5% and

pound Risk-free rate = 1%

Net Risk- free Rate = 5 - 1

                               = 4%

Risk-Neutral Probability of price Rise (p) = (0.04 - 0.085) / (1.15 - 0.85)

                                                                   = 0.653

$ price of pound if price rises = 1.15 x 0.01 =$ 0.0115 / pound

$ price of pound if price falls = 0.85 x 0.01 = $ 0.0085 / pound

Strike price = current spot rate (as option is at the money) = 0.01 $ / pound

Therefore, pay offs one period later

if price is $ 0.0115 / pound, pay off (p₁)= 0.0115 - 0.01

                                                              = 0.0015$/ Pound

If price is 0.0085 $ / pound, pay off (p₂) = $0

Hence, Expecyed pay off = p₁ x p + p₂ x (1-p)

                                           = 0.0015 x 0.633 + 0 x ( 1 - 0.633)

                                            = $ 0.00095 / pound

Call price = Present value of Expected pay off at Net Risk-free risk

                = 0.00095 exp (0.04)

                 = $ 0.000912 / pound

5 0
3 years ago
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