Answer:
$1,500,000
Explanation:
Data provided in the question:
contribution margin of the company = $1,000,000
Contribution margin ratio = 40%
Now,
The sales = (contribution margin) / (Contribution margin ratio)
thus,
Sales = 
or
sales = $2,500,000
Therefore,
Variable cost = Sales - Contribution margin
or
Variable cost = $2,500,000 - $1,000,000 = $1,500,000
Answer:
Letter of Credit is the correct answer.
Explanation:
Answer:
The investors should expect to 9.26% of Return.
Explanation:
The Dividend Discount Model for Constant Growth should be used here.
DDM = Current Price = Dividend of Year 1 / (Required Return - Growth Rate)
Dividend of Year 1 = 1.64 (1.03) = 1.6892.
Re-arrange the above model for Required Return and put values:
Required Return = (1.6892 / 27) + .03 = .0926 OR 9.26%.
Thanks!
When allocating their assets bankers take into account their reserve equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated.
Answer:
c. Real GDP in long run
Explanation:
Potential GDP refers to the level of real GDP in long run.