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Answer:
- 5,000 watches : $150,000 loss
- 20,000 watches: $60,000 (Loss)
- Break-even point = 30,000 units
- if the selling price rises to 32 = break even points descends to 10,588 units
- If the selling price rises to $32 but variable costs rises to $26 , the break even point goes back to 30,000units.
Explanation:
Hi, to answer this question we have to apply the next formula:
Profit = Revenue -cost
Where the revenue is equal to the units sold (x) multiplied by the selling price,
R = 21 x
And cost is equal to the sum of the fixed and variable costs.
C = 15x + 1800
So:
P = 21x-(15x +180,000)
P = x ( 21-15)- 180,000
P = 5000(21-15)-180,000
P = 5000(6) -180,000
P= 30,000-180,000
P=-$150,000 (loss , since is negative )
P = 20,000(6) -180,000
P = 120,000-180,000
P=-$60,000 (Loss)
- To find the break even point:
R = C
21x = 15x + 180,000
21x-15x =180,000
6 x = 180,000
x = 180,000/6
x =30,000 units
- if the selling price rises to 32
32x = 15x + 180,000
32x-15x = 180,000
17x =180,000
x = 180,000/17
x = 10,588 units
It descends,
- If the selling price rises to $32 but variable costs rises to $26
32x = 26x+180,000
32x-26x = 180,000
6x = 180,000
x = 180,000/6
x =30,000
The break-even point comes back to 30,000 units.
Answer:
r= 3
Explanation:
Due that the level price does not changed, the first thing that you have to do to find the equilibrium is put the two equations with an equal
Money demand =Supply of money
2,200 – 200 r= 2,000
Now you have to find the value of r and you have to clear the formula and first you have to:
2,800- 2,200 = 200r
Now that you have the number together you have to apply the operation
600 = 200r
As the 200 is multiplying the r you have to pass the 200 to divided the 600
r= (600/200)
r= 3%
The interest rate is 3%
Answer:
The correct answer is letter "E": cash flow to stockholders.
Explanation:
The cash flow to stockholders is the amount of money a firm pays to its debtholders and stockholders. It is calculating by subtracting the <em>dividends paid minus new equity</em> -if raised any. The Board of Directors determines the amount and the period to be considered for the dividends and if they are paid from the organization's current earnings or the reserve revenues.
The free cash flow can be calculated as below:
Revenue 12000000
Less: Expense (8000000)
Less: Depreciation (1500000)
Earnings Before Tax 2500000
Less Tax (750000)
Earnings after tax 1750000
Add Depreciation 1500000
Total Cash Earnings 3250000
Less: Change in Working Capital (500000)
Less : Purchase of Asset (700000)
Free Cash Flow 2050000
Thus Free Cash Flow can be calculated as above.