The answer to this question is Law of Supply.
Answer:
It will need to sale 2,002 units per year to achieve a 10% return on the machine
Explanation:
We will calculate the amount of sales in dollars. We will think this as an annuity which present values is 123,000. That way the company will achieve a 10% return on the machine:
PV $123,000.00
time 10 years
rate 10% = 0.1
C 20,017.68
Now, we divide the cuota by the price per unit to get the units sales per year:
20,017.68 / 10 = 2,001.76 = 2,002 units
Answer:
Bond A
Explanation:
Interest rate risk is the likelihood of loss to bondholders emanating from an increase in a bond's market interest rate which is also the yield to maturity.
However, a bond is issued at a premium when its market interest rate is lower than the coupon rate and at a discount when the reverse is the case.
In this instance, bond A was issued at a discount while B was issued at a premium, hence, the market interest rate of Bond A is higher and it has a higher interest rate risk due to its yield to maturity which made it trade at a discount to the face value of $1000 per bond
Answer:
Variable cost per unit= $1.16 per mile
Explanation:
Giving the following information:
January 16,200 $22,650
February 17000 $23,250
March 18400 $25,450
Apri 16500 $22,875
May 17400 $23,550
June 15300 $21,850
<u>To calculate the variable cost per mile under the high-low method, we need to use the following formula:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (25,450 - 21,850) / (18,400 - 15,300)
Variable cost per unit= $1.16 per mile
