Solution :
Alternative A Alternative B Alternative C
Annual fixed cost 105000 126000 82000
Variable fixed cost 24 25 37
a). We have to find out the Break even quantity :
Break Even quantity for A
= 3750 units
Break Even quantity for B
= 4666 units
Break Even quantity for C
= 5466 units
Therefore, Alternate A has the lowest Break Even quantity.
b). Now,
= 280,000 - 105,000
= 175,000
= 270,000 - 126,000
= 144,000
= 150,000 - 105,000
= 45,000
Thus, alternate A has the highest amount of profit.
c).
Units of the target profit for A
= 5535 units
Units of the target profit for B
= 6517 units
Units of the target profit for C
= 8799 units
Thus Alternative A will require the lowest volume of the output.
Answer:
Objectives of Business – Profitability, Growth, Stability, Efficiency and Survival. Business means busy in some activities. Business means conducting activities such as – sale, purchase and manufacturing etc for profit and growth.
Explanation:
Answer:
Nominal figures are the current monetary values. Real figures are adjusted for inflation and show prices at constant prices.
Explanation: Hope this helps:)
Answer:
= 8.89%
Explanation:
T<em>h rate of return on a preferred stock is the dividend divided by the price of the stock multiplied by 100</em>
<em>Return = Dividend/price × 100</em>
Quarterly dividend = $1
<em>Annual dividend </em>
= 1 × 4 ( Note there are four quarters in year)
= $4
<em>Annual rate of return</em>
= (4/45)× 100
= 8.89%