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3 years ago

_____ is a method of determining what sales volume must be reached before total revenue equals total costs.?

1 answer:

lina2011 [118]3 years ago

7 0

The answer is the option d. break-even analysis.

Break-even analysis is the method in which you make the incomes equal to the costs and expenses.

The income is the function that relates number of products manufactured and sold with the income, while the costs and expenses is the function that relates the number of products with the total cost.

When you make both income and costs equals you can determine the number of products that make you even (income = costs).

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An investment of $6000 earns interest at 2.5% per annum compounded semi- annually for 5 years. At the that time the interest rat

slamgirl [31]

The accumulated value be $7212.10 2 years after the change.

Calculation

FV = PV × (1 + r / k) $^ {(nk)}$ (here k = no. of times compounded in a year)

so, in first case

FV = 6000 × (1 + 2.5%/ 2) $^{(5 . 2)}$

= $6793.62

The FV becomes PV in the second case

So, FV = 6793.62 × (1 + 3%/ 4) $^{(2 . 4)}$

= $7212.10

<h3>What is accumulated value?</h3>

The sum of an investment's present holdings, including the money invested and interest accrued thus far, is known as its accumulative value. Because it refers to the whole acquired value of a whole life insurance policy, the accumulative value is significant in the insurance industry. Accumulated value, also known as accumulated amount or cash value, is determined by adding the initial investment and any interest that has already been accrued.

When the owner of a whole (or universal) life insurance policy starts making monthly premium payments, the accumulated value of the policy starts to increase for insurance reasons. These premium payments are divided into two halves by an insurance company. The first part pays for the costs of the fundamental insurance coverage. The insurance company places the second share in an internal account where it serves as a form of investment that builds cash value.

Learn more about accumulative value

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6 0

1 year ago

Suppose 2 athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal

maxonik [38]

Answer:

player 2 is signing a better contract

Explanation:

the present value of an annuity (player 1) = annual payment x annuity factor

assuming that the interest rate is 10%

present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million

player 2's contract

the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million

4 0

3 years ago

If everyone buys the same goods every year and the price of housing rises by 38 percent, it is

OverLord2011 [107]

It is not possible to tell what happened to the CPI because other than for housing , we do not know what happened to the prices of any of the other goods.

7 0

4 years ago

Suppose that the reserve ratio is 10% when the Fed sells $25,000 of U.S. Treasury bills to the banking system. If the banking sy

andre [41]

Answer:

d $250,000; subtracted from

Explanation:

Sales of U.S. Treasury bills to the banking system by the Fed is a contractionary monetary policy that will reduce the money supply.

Based on the money supply multiplier, the amount of the reduction in money can be calculated as follows:

Amount of reduction in money supply = $25,000 / 10% = $250,000.

Therefore, if the banking system does NOT want to hold any excess reserves, <u>250,000</u> will be <u>substracted from</u> the money supply.

7 0

3 years ago

When recommending domestic corporate long-term debt instruments to a customer, which of the following risks is the LEAST importa

nordsb [41]

Answer:

D. Currency exchange risk

Explanation:

If you must deal with only domestic long term investments, then you should not worry about the currency exchange risk. The currency exchange risk is extremely relevant and important when you are dealing with investments in foreign countries. The currency exchange risk refers to risks associated with the US dollar depreciating or appreciating against other foreign currencies.

8 0

3 years ago