Answer:
$710,000
Explanation:
A flexible budget is a type of budget that changes in relative to the volume of output
<u>Workings</u>
Monthly Fixed manufacturing cost - $50,000
Variable cost /Ton - $12
Production in March -55000
Variable cost of production in March - $(12*55000) = $660,000
Total manufacturing cost = Fixed cost + Variable cost
$660,000 + $50,000= $710,000
<u />
Answer:
23.8
Explanation:
Oriole stock have a beta of 1.60
The expected market return is 17.5
The risk free rate is 7.0
Therefore the expected return for oriole stock can be calculated as follows
= 7 + 1.60(17.5-7)
= 7+ 1.60(10.5)
= 7 + 16.8
= 23.8
As a handy tip, we were told that in order to convert the lease factor of a certain amount or transaction to interest rate, we just have to multiply the value by 2, 400.
interest rate = (0.00065)(2400) = 1.56%
Thus, the answer for this item is 1.56%.