Answer:$27.78
Explanation:
Expected value of debt after one year = (40* .60)+(15*.40)
= 24 + 6
=$ 30
Current value of debt = Value at 1year / (1+r)^n
= 30/ (1+.08)^1
= 30 / 1.08
=$ 27.78
In order to break even, they would need to sell at least 5,000 units
Break even point is calculated by the formula:
Fixed costs÷(selling price -variable costs per unit)
i.e.
100,000 ÷ (60-40) = 5,000
Anything they sell above this number will start to produce profits for the company
The yearly rate of inflation in car prices over the 8 years that Dave bought his new car for $8,400 is <u>5.1%</u>.
<h3>What is inflation?</h3>
Inflation is the general increase in prices of goods and services in an economy which reduces the purchasing power of the consumers.
Based on the given information, the yearly increase in the inflation rate can be computed using the present value formula from an online finance calculator as below.
<h3>Data and Calculations:</h3>
N (# of periods) = 8 years
I/Y (Interest per year) = 5.1%
PMT (Periodic Payment) = $0
FV (Future Value) = $12,500
<u>Results:</u>
PV = 8,396.31 or $8,400
Total Interest $4,477.49
Thus, the yearly rate of inflation in car prices over the 8 years that Dave bought his new car for $8,400 is <u>5.1%</u>.
Learn more about inflation at brainly.com/question/8149429
Answer:
A short-term inducement of value offered to arouse interest in buying a product or service
Explanation:
Sales promotion can be defined as a process of trying to get a potential customer to buy the product by persuading them. Sales promotion a short-term tactic used for the purpose of boosting sales. As a method of building long-term customer loyalty, it is barely suitable. Sales promotions are aimed at getting consumers interested in purchasing a product or service.
Answer:
The contribution margin statement is found below with a contribution margin of $149,800 and operating income of $145100
Explanation:
Contribution Margin Statement
Sales revenue ($720*700) $504000
Variable costs:
Cost of generators($470*700) ($329000)
Commission(5%*$504000) <u> ($25200)</u>
Contribution margin $149,800
Fixed costs
Rent ($3000)
Additional commission <u> ($1,700)</u>
Operating income $145100
Cost of rent is fixed as it is not depended on the quantity of generators sold.
Additional commission is fixed amount,so it is a fixed cost, while costs of buying generators as well as the commission of 5% are both variable costs.
