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3 years ago

Break-Even Sales

Business

1 answer:

Licemer1 [7]3 years ago

3 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Currently, the unit selling price of a product is $125, the unit variable cost is $105, and the total fixed costs are $460,000. A proposal is being evaluated to increase the unit selling price to $130.

Break-even point= fixed costs/ contribution margin

A) Break-even point= 460,000/(125-105)= 23,000 units

B) Break-even point= 460,000/ (130 - 105)= 18,400 units

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1. You have a portfolio that is invested 21% in Stock A, 34% in Stock B, and 45% in Stock C. The betas of the stocks are .66, 1.

MrMuchimi

Answer:

Portfolio Beta = 1.225 rounded off to 1.23

Option e is the correct answer.

r = 0.13338 or 13.338% rounded off to 13.34%

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,

Portfolio Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

w is the weight of each stock

Portfolio Beta = 0.21 * 0.66 + 0.34 * 1.21 + 0.45 * 1.5

Portfolio Beta = 1.225 rounded off to 1.23

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.037 + 1.22 * (0.116 - 0.037)

r = 0.13338 or 13.338% rounded off to 13.34%

3 0

3 years ago

Your analyst team has received a request for system development that focuses on moving the current system into a new operating e

LenaWriter [7]

The key source of the development requests likely to be generated to Information system managers. Therefore the correct option is (D).

<h3>What is Information System Management? </h3>

The Information system of Management refers to the management of the data, facts, figures or information of the system in the computer by the organizations.

According to the above scenario, The system development team is focusing on the adopting the operating environment system which is adopted by the Information system managers

Therefore the correct option is (D).

Learn more about Information system managers here:

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8 0

1 year ago

What Is One Reason Why Inflation Can Occur

GrogVix [38]

Answer:

Both types of inflation cause an increase in the overall price level within an economy. Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economy's productive capacity.

Explanation:

8 0

2 years ago

Read 2 more answers

Scot and Vidia, married taxpayers, earn $90,400 in taxable income and $5,000 in interest from an investment in City of Tampa bon

EastWind [94]

Answer:

a) Since Scot and Vidia's ordinary income = $90,400 + $81,000 = $171,400, their marginal tax rate will be 24%, and they will owe $29,211 + [($171,400 - $171,500) x 24%] = $29,295 in taxes

They will also have to pay 15% of $5,000 (capital gains) = $750

b) Since Scot and Vidia's ordinary income = $90,400 - $81,000 = $9,400, their marginal tax rate will be 10%, and they will owe $9,400 in taxes

They will also have to pay 15% of $5,000 (capital gains) = $750

4 0

2 years ago

The following incomplete (columns have missing amounts) pension spreadsheet is for the current year for First Republic Corporati

lisov135 [29]

Answer:

$(52)

Explanation:

Calculation to determine the net pension asset/liability reported in the balance sheet at the end of the year

First step is to calculate the Ending PBO using this formula

Ending PBO=(Asset Beginning balance)+(Service cost)+(Interest cost)+(Loss on PBO)+Retiree benefits

Let plug in the formula

Ending PBO = $(880) + ($78) + ($44) + ($8) + $81

Ending PBO= $(929)

Now let calculate the Net pension liability

Using this formula

Net pension liability=(Ending PBO)+Ending balance

Let plug in the formula

Net pension liability = $(929) + $877

Net pension liability= $(52)

Therefore the net pension liability reported in the balance sheet at the end of the year is $(52)

5 0

2 years ago