Answer:
Break-even point (dollars)= $9,976.25
Explanation:
Giving the following information:
Fixed costs:
Rent $2,500
Utilities $500
Interest $750
An insurance premium of $200
Advertising on local bus $250 a month
Total= $4,200
A small bucket of take-out chicken, the only menu item, is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50.
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 4,200/ [(9.5 - 5.5)/9.5]
Break-even point (dollars)= 4,200/0.421
Break-even point (dollars)= $9,976.25
Answer:B. She is entitled to recover the damages if she can show that Roland agreed to pay such damages in his contract with her.
Explanation:
The non payment of the N500 installment by Roland constitute a breach of the sales contract, However an evidence of a commitment to be liable for additional cost that will be incurred will make it possible for Selina to recover the damages.
Answer:
It will take 25.28 year to have enough to buy the car ( ignoring Inflation effect)
Explanation:
Current Deposit = PV = $49,000
Future Value = FV = $199,000
Interest Rate = r = 5.7%
Use following Formula
FV = PV ( 1 + r )^n
$199,000 = $49,000 ( 1 + 0.057 )^n
$199,000 / $49,000 = ( 1 + 0.057 )^n
4.06 = 1.057^n
Log 4.06 = n log 1.057
n = log 4.06 / log 1.057
n = 25.28
it requires 25.28 year to have an amount to buy the Ferrari.
Answer: Option C
Explanation: Moral hazard refers to a situation when an individual starts taking unnecessary avoidable risks, knowing that the potential loss will be bore by someone else.
In the given case right option is C, as the most effective way to avoid moral hazard is to hire those consultants who have a good image in market of not shirking and performing their duties well.
Answer:
B. $83,000
Explanation:
Inventory value at adoption = $50,000
Increase in inventory using base year price = $30,000
Current year Price increase = 10%
Increase price = $30,000 + ( $30,000 x 10% )
Increased price inventory = $30,000 + $3,000
Increased price inventory = $33,000
Amount of Inventory reported on balance = Inventory value at adoption + Increase price Inventory
Amount of Inventory to be reported on balance = $50,000 + $33,000
Amount of Inventory to be reported on balance = $83,000
