Answer:
$15.30
Explanation:
Given that,
Fixed costs = $1,800,000 per year
Variable cost = $3.30 per unit
40% of its business is with one preferred customer.
Total units sold in a year = 150,000
Unit cost per item:
= (Fixed cost ÷ Total units sold) + Variable cost per unit
= ($1,800,000 ÷ 150,000) + $3.30
= $12 + $3.30
= $15.30
Therefore, the unit cost per item is $15.30.
Answer:
Inflation in 2012:
= 10%
Inflation in 2013:
= 9.09%
Inflation in 2014:
= 5%
Real rate of interest = Nominal - inflation
Given that,
Nominal rate = 8%
Therefore,
Real interest rate is as follows:
2012:
= 8% - 10%
= -2%
2013:
= 8% - 9.09%
= -1.09%
2014:
= 8% - 5%
= 3%
$6000 at 8% grows to:
= 1000 × 1.08
= $6,480 in one year
which is invested again to grow to $6,998.4 in two years
which is invested again to grow to $7,558.272 in three years
so,
Total gain:
= 25.9712%
The price level increases in three years by:
= 26%
So,
Total real rate of return:
= Total gain - Percentage increase in prices
= 25.9712 - 26
= -0.0288%
Answer: The expected loss is $2.3
Explanation:
Total number of tickets to be sold = 100 tickets
one $450 prize, the expected gain = 450 x (1/100) = $4.5
two $110 prizes, the expected gain = 110 x (2/100) = $2.2
four $25 prizes. the expected gain = 25 x (4/100) = $1
Expected gain (loss) = Total expected gain - Cost of the ticket
= (4.5 + 2.2 + 1 ) - 10
= (2.3)
The expected loss is $2.3
Answer:
8.66%
Explanation:
The computation of the rate of return for the investor in the fund is as follows:
= (Net assets at the end + dividend per share - nav at the beginning of the year) ÷ (nav at the beginning of the year)
where,
Net assets at the end is
= $203 million + $203 million × 7% - ($217.21 million × 0.75%)
= $203 million + $14.21 million - $1.6291 million
= $217.21 million - $1.6291 million
= $215.58093 million
Dividend per share is
= $5 million ÷ 10 million shares
= 0.5
Nav at the beginning of the year is
= $203 million ÷ 10 million shares
= $20.3
Now the rate of return is
= ($215,.58093 + 0.5 - $20.3) ÷ ($20.3)
= 8.66%
