Answer: True
Step-by-step explanation:
To determine the equation to represent this situation, we can use 2.5x to show the amount of profit per product, and a y intercept value of -550 to show the cost for rent. Now, we have the equation y=2.5x-550.
The break even point is when the profits balance out the expenses, so in this case, y should equal 0.
0=2.5x-550
Add 550 to both sides...
550=2.5x
Divide both sides by 2.5...
x=220
So, our answer is 220 products.
The return on equity for the firm is 18.75%.
<h3>Return on equity</h3>
Return on equity=Return on assets +[ (Debt/Equity ratio)×(Return on assets-Return on debt)]
Let plug in the formula
Return on equity=.15+ [(.75)× (.15-.10)]
Return on assets=.15+ (.75×0.05)
Return on assets=.15+0.0375
Return on equity=0.1875×100
Return on equity=18.75%
Therefore the return on equity ratio is 18.75%.
Learn more about return on equity here:
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Answer:
{x,y}={5,4} x is =5 y= to 4