Answer:
a. Taxable equivalent yield:
Municipal bonds are tax free so if they are to be compared with bonds where you have to pay taxes, the following formula is used:
= Municipal interest / ( 1 - tax rate)
= 3.10 / (1 - 28%)
= 4.31%
b. Annual amount of interest received:
= Coupon rate * Face value
= 5.8% * 1,000
= $58
Answer:
Break-even point in units= 25,000
Break-even point (dollars)= $125,000
Explanation:
<u>To calculate the number of units to be sold and the sales dollars required, we will use the break-even point analysis. The following formulas are required:</u>
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (30,000 + 20,000) / (5 - 3)
Break-even point in units= 25,000
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= 50,000 / (2/5)
Break-even point (dollars)= $125,000
Which of the following statements are true? (plato)
A. Economic stability means fair distribution of goods in an economy.
B. Full employment is a macroeconomic goal.
C. Inflation is a fall in the prices of goods and services.
D. Inflation is a rise in the prices of goods and services.
E. Microeconomics studies the economy as a whole.
The bold choices are the true statements from this question. C in incorrect because D. is correct, inflation is defined as the rise in prices and goods and services. These goods and services inflat as the economy rises.
E. Is incorrect because microeconomics does not study the economy as a whole, rather, it studies single factors and the effects of indvidual decisions.
Full employment is a macrocroeconomic goal because it studies large-scale or general economic factors vs smaller (micro/microeconomic) factors.
Answer:
Purchases= 3,500lbs
Explanation:
Giving the following information:
Production= 4,000*1.5= 6,000 lbs
Beginning inventory= 5,000 lbs
Ending inventory= 2,500 lbs
<u>To calculate the direct materials purchase, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= 6,000 + 2,500 - 5,000
Purchases= 3,500lbs
