Answer:
$1,035
Explanation:
For computing the paying price, first we have to determine the quoted price and the accrued interest which is shown below:
Quoted price would be
= Ask price percentage × par value
= 101.25% × $1,000
= $1,012.50
Now the accrued interest would be
= Par value × coupon rate ÷ 2 × (payment months ÷ total months)
= $1,000 × 9% ÷ 2 × (3 months ÷ 6 months)
= $22.50
Now the paying price would be
= $1,012.50 + $22.50
= $1,035
We assume the par value and the ask price percentage and the payment month is calculated from the April 15 to July 15 and total month is calculated from January 15 to July 15
Answer:
Following are the solution to the given point.
Explanation:
For question 1:
Economic gains are distinct from bookkeeping gains. Accounting value also takes into account the cost of potential.
that's why "option a" is correct.
For question 2:
The "option d" is correct.
For question 3:
The "option c" is correct.
Answer:
d. $91,250
Explanation:
We can calculate variable costs by using the contribution margin ratio formula.
Contribution Margin Ratio= Sales revenue Less Variable Costs/Sales revenue
45%= $ 425,000- Variable Costs / $ 425,000
45% * $425,000= $ 425,000 -Variable Costs
$ 191250= $ 425,000- Variable Costs
Variable Costs = $ 425,000- $ 191250
Variable Costs = $ 233750
Sales $ 425,000
Variable Costs 233750
Fixed Costs= $ 100,000
Income from Operations= $ 91250
a. 50 cents
Contribution margin per unit is price per unit- variable cost per unit
1.75 - ($50,000/40,000 units)
1.75 - 1.25 = $ .50
b. $8750
Margin of safety is the expected sales - break even sales
(45,000 units * $1.75 per unit) - (40,000 *1.75)
78,750 - 70,000 = $8750