Answer:
The correct answer is B.
Explanation:
Giving the following information:
He gave up his $30,000 salary and invested his retirement fund of $50,000. After all expenses, his net winnings were $35,000.
The difference between economic profit and accounting profit is that the first one takes into account the opportunity cost. In this case, the cost of not perceiving the salary.
Economic profit= winnings - opportunity cost
Economico profit= 35,000 - 30,000= $5,000
Answer:
1,C. Fixed
2.D. Variable
Explanation:
A fixed-rate loan has an interest rate that doesn't change throughout the life of the loan. Because the rate remains the same for the entire term, the monthly loan payment shouldn't change, resulting in a relatively low-risk loan. As you compare loan options, note whether or not loans feature fixed rates
.A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.
Production possibilities curve shifted outward
Yes, because the bond's yield to maturity may have changed.
Do zero coupon bonds have a yield?
Without accounting for any interest payments, zero-coupon bonds always demonstrate yields to maturity adequate to their normal rates of return. The yield to maturity for zero-coupon bonds is additionally known as the spot rate.
What is the difference between a zero-coupon bond and a coupon bond?
Regular bonds, which also are called coupon bonds, pay interest over the lifetime of the bond and also repay the principal at maturity. A zero-coupon bond doesn't pay interest but instead trades at a deep discount, giving the investor a profit at maturity once they redeem the bond for its full face value.
Advantages Of Zero-Coupon Bond:
The Zero Coupon bonds eliminate the reinvestment risk. Zero-Coupon bonds don't let any periodic coupon payments, and hence a hard and fast interest on Zero Coupon bonds is guaranteed.
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Answer:
$2.3 per unit
Explanation:
Calculation for company's unit contribution margin
First step is to calculate the Contribution margin using this formula
Contribution margin = Sales revenue - Variable manufacturing expenses - Variable selling and administrative expenses
Let plug in the formula
Contribution margin = $1,010,500 - $416,000 - $54,000
Contribution margin = $540,500
Now let calculate the Contribution margin per unit using this formula
Contribution margin per unit = Contribution margin / Cement tons
Contribution margin per unit = $540,500 / 235,000
Contribution margin per unit =$2.3 per unit.
Therefore company's unit contribution margin is $2.3 per unit