Answer:
Margin of safety= $2,651
Explanation:
Giving the following information:
Awanita Enterprises sells computer flash drives for $ 2.41 per unit. Unit variable cost is $ 0.07. The breakeven point in units is 3,400, and expected sales in units are 4,500
Margin of safety= 4,500*2.41 - 3,400*2.41= $2,651
Answer:
Bond Price or Present value = $23021820.4557 rounded off to $23021820
Explanation:
To calculate the quote/price of the bond today, the present value, we will use the formula for the price of the bond. As the bond is a semi annual bond, the semi coupon payment, semi annual number of periods and semi annual YTM will be,
Coupon Payment (C) = 25000000 * 0.07 * 6/12 = $875000
Total periods (n) = 5 * 2 = 10
r or YTM = 0.09 * 6/12 = 0.045 or 4.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 875000 * [( 1 - (1+0.045)^-10) / 0.045] +
25000000 / (1+0.045)^10
Bond Price or Present value = $23021820.4557 rounded off to $23021820
<u>"Consumption" </u> is about two-thirds of the demand side of gdp, but it moves relatively little over time.
Consumption expenditure by family units is the biggest segment of GDP, representing around two-thirds of the GDP in any year. This reveals to us that shoppers' spending choices are a noteworthy driver of the economy. Notwithstanding, consumer spending is a delicate elephant: when seen after some time, it doesn't bounce around excessively.
Answer:
C) call premium
Explanation:
These additional $30 are called the call premium. They are basically a fee that the issuer pays to the holder when they break the agreed-upon time frame and recall the bond at an earlier date. Basically, it is a payment form of saying sorry redeeming the asset earlier than expected. This call premium is applied to a variety of different assets such as bonds and preferred shares, among others.
Answer:Please refer to the explanation section
Explanation:
The question is incomplete, amounts of production costs like Direct Material, direct labour and Variable/Fixed manufacturing overheard were not given, we will explain the absorption cost and variable cost in detail so that the student would be able to calculate absorption cost and variable cost balances easier.
Absorption costing Method
Total Manufacturing costs are allocated to Finished goods Product. Absorption Costing method assigns or allocates the total cost of Manufacturing or total production costs to units of Finished Goods produced. each unit of finished goods thus represents total costs of production per unit or Total Manufacturing/Production cost is the Balance of Finished Goods.
Total Manufacturing/Production cost = direct labor cost + direct material cost + variable and fixed Manufacturing overheads cost.
Finished Goods Balance = Total Manufacturing/Production cost
A unit of Finished Goods = Total Manufacturing costs/units produced
Variable costing method
Variable costing method fixed manufacturing costs are treated as an expense, Variable Manufacturing costs are the only allocated to inventory. The value or Balance of inventory consist of Variable Manufacturing cost like Direct labor, Direct Material and Variable Manufacturing costs. Finished Goods Balance equals total Variable Manufacturing cost
