Gainsharing plans are:

What are the portfolio weights for a portfolio that has 138 shares of Stock A that sell for $48 per share and 118 shares of Stoc

Vika [28.1K]

Explanation:

The portfolio weight of an asset is the total investment in that asset divided by the total portfolio value. First, we will find the portfolio value, which is:

Total value = 122($32) + 102($22) = $6,148

The portfolio weight for each stock is:

WeightA = 122($32) / $6,148 = .6350

WeightB = 102($22) / $6,148 = .3650

7 0

3 years ago

Ray's Pizzeria is considering the addition of a 5th worker if this increases profit. Pizza sales increased from 300 per day to 3

Anika [276]

Answer:

60 pizzas

40 pizzas

Explanation:

Marginal product measures the change in output as a result of a change in input by one unit

Marginal product = change in output / change in input

Marginal product for the 4th worker

Change in output = 360 - 300 = 60 pizzas

Change in input = 4 - 3 = 1 worker

Marginal product = 60 / 1 = 60

Marginal product for the 5th worker

Change in output = 400 - 360 = 40 pizzas

Change in input = 5 - 4 = 1

Marginal product = 40 / 1 = 40

It can be seen that marginal product decreased from 60 to 40 when the 5th worker was added. This illustrates diminishing marginal returns.

The law of diminishing returns says as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.

6 0

2 years ago

What is the present value of a security that will pay $34,000 in 20 years if securities of equal risk pay 8% annually? Round you

OLga [1]

Answer:

present value = $7296.14

Explanation:

given data

future value = $34,000

time t = 20 year

rate r = 8% = 0.08

solution

we apply here future value formula for get present value that is

future value = present value × $(1+r)^{t}$ .....................1

put her value and we get

$34,000 = present value × $(1+0.08)^{20}$

present value = $\frac{34000}{1.08^{20}}$

present value = $\frac{34000}{4.660}$

present value = $7296.14

4 0

3 years ago

Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs o

NARA [144]

Answer :

Break even units = 10,500

Break even amount = $2,100,000

Explanation :

As per the data given in the question,

a) Break even units = Fixed expense ÷ CM per unit b ÷ (a - c)

= ($466,000 + $269,000) ÷ ($200 - $110 - $20)

= 10,500 units

b) Break even amount = b ÷ (a ÷ c)

= ($466,000 + $269,000) ÷ ($70 ÷ $200)

= $2,100,000

Contribution margin ratio = Contribution margin ÷ Selling price per unit × 100

where,

Contribution margin = Selling price per unit - variable expenses per unit

c) CM per unit Break even units = Fixed expense ÷ Cm per unit

= $735,000 ÷ $70

= 10,500 units

Break even dollars = Fixed expense ÷ Contribution margin ratio

= $735,000 ÷ 0.35

= $2,100,000

d) Contribution margin income statement:

Sales = 10,500 × $200 = $2,100,000

Less Variable expenses 10,500 × ($110+$20) = $1,365,000

Contribution margin $735,000

Less Fixed Expense $735,000

Net Operating Income = $0

6 0

3 years ago

It is theorized that the price per share of a stock is inversely proportional to the prime (interest) rate. In January 2010, t

Zanzabum

Answer:

price per share in March is $96

Explanation:

given data

January price per share = $193.04

January prime rate = 2.75%

march prime rate = 5.50%

to find out

What was the price per share in March

solution

we know that here price is proportional to prime rate

Price ∝ $\frac{1}{rate}$ ........1

so price = k × $\frac{1}{rate}$ ...............2

k is constant here

so put all value for january

193.04 = k × $\frac{1}{2.74%}$

k = 5.28

so for march price per share will be by equation 2

price = 5.28 × $\frac{1}{5.50%}$

price = 96

so price per share in March is $96

3 0

3 years ago