It's useful when calculating the time an investment will take to double, given an annual fixed rate of interest.
Answer:$2
Explanation:
A company normally is expected to value it's inventory at the lower of cost or net realisable value. The cost price is the price on purchase of the inventory while the net realisable value is selling price less cost of sales and cost to completion.
The amount of the lower cost of market adjustment the company must make, is the difference between the new selling price of $15 and net realisable value of $13 which is $2.
Answer:
(a) $45
(b) 4.45%
(c) 1.41%
Explanation:
a) Dollar return:
= Selling Price - Buying Price + Coupon
= $985 - $1,010 + $70
= $45
b) Rate of return:
= Dollar return ÷ Buy price
= 45 ÷ 1,010
= 4.45%
c) Based on Fisher relation,
(1 + Nominal rate) = (1 + Real rate) × (1 + Inflation)
(1 + 4.45%) = (1 + Real rate) × (1 + 3%)
Therefore,
Real rate = 1.41%
The computation of the break-even point (in dollars) is given below:
Break-even (dollars) = Break-even (units) x Selling price
= $10 x 12,000 units
= 120,000
Based on the data given in the problem, compute the revised break-even point (in units) for shop 48 after the payment of the incentive.
The break-even point is the point at which total costs equal total sales, and there is no loss or profit for a small business. This means that we have reached a stage of production where the cost of production equals the revenue of the product.
The break-even point is used in several areas of economics and finance. In accounting terms, it refers to the level of production where the total revenue from production equals the total cost of production.
Learn more about the break-even point at
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