Answer:
a. $ 90,000 cost decrease
Explanation:
The computation in the change in the amount of differential cost is shown below:
= (Unit cost by ignoring the fixed cost) - (unit cost to manufacturing the purchase cost) × number of units purchased
= ($12 - $15) × 30,000 units
= $3 × 30,000 units
= $90,000 decrease
And the other information which is given in the question is not relevant. Hence, ignored it
Answer:
the contribution margin per unit is $5.75 per unit
Explanation:
The computation of the contribution margin per unit is shown below:
The Contribution margin per unit is
Contribution margin per unit= Contribution margin ÷ Sales units
= ($69,000 - $46,000 ) ÷ 4,000
= $5.75 per unit
Hence, the contribution margin per unit is $5.75 per unit
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
The correct answer is letter "C": Kelvin buys more donuts at $0.80 per donut than at $0.95 per donut, other things equal.
Explanation:
The demand law states that if the price of a good or service decreases, the quantity demanded for that good or service will increase. On the other hand, if the price of a god or service increases, the quantity demanded will decrease. The price-quantity demanded of the demand law is inversely proportional, <em>ceteris paribus</em>.
Thus, Kelvin's case is an example of the demand law since he purchases more donuts when the price is lower ($0.80) and purchases fewer donuts when the price is higher ($0.95).
Answer:
P0 = $32.60869565 rounded off to $32.61
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D1 / (r - g)
Where,
- D1 is dividend expected for the next period
- r is the required rate of return
P0 = 0.75 / (0.105 - 0.082)
P0 = $32.60869565 rounded off to $32.61