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Ede4ka [16]
3 years ago
15

Concord Corporation has a new product going on the market next year. The following data are projections for production and sales

: Variable costs $125000 Fixed costs $450000 ROI 14% Investment $1300000 Units produced and sold 100000 units What is the target selling price per unit? $6.32 $5.75 $7.57 $3.07 Save for Later
Business
1 answer:
kirza4 [7]3 years ago
7 0

Answer:

$7.57

Explanation:

Return on investment (ROI) = Net profit/Investment = 14%

Net profit/$1,300,000 = 14%

Net profit = $1,300,000 × 14% = $182,000

Total costs = Variable costs + Fixed costs = $125,000 + $450,000 = $575,000

Total revenue = Total costs + Net profit = $575,000 + $182,000 = $757,000

Target selling price = Total revenue/Units produced and sold = $757,000/100,000 = $7.57

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"Which statements are TRUE about IO tranches? I When interest rates rise, the price of the tranche falls II When interest rates
horrorfan [7]

The available options are:

A. I and III

B. I and IV

C. II and III

D. II and IV

Answer:

C. II and III

Explanation:

IO tranche which is an acronym for Interest Only tranche is defined as a form of tranche which earns interest only from a secured loan which is derived from Principal Only tranche.

However, Interest Only tranche is quite different from a typical bond, simply because when market interest rate increases the rate of prepayment decreases, which in turn makes the rate of maturity to be longer. Thereby when interest rates increase, prices increase, and vice versa.

Hence the true statements are:

II When interest rates rise, the price of the tranche rises

III When interest rates fall, the price of the tranche falls

5 0
2 years ago
Consider two nations, Spendia and Savia. The MPC for Spendia is 0.8, and the MPC for Savia is 0.5. Assume that both nations expe
ruslelena [56]

Answer: See explanation

Explanation:

The increase in income for Spendia will be:

= 1 / (1 - MPC)

where MPC = 0.8

= 1 / (1 - 0.8)

= 1 / 0.2

= 5

Increase in income = Gross investment × multiplier

= $100 × 5

= $500 million

The increase in income for Savia will be:

= 1 / (1 - MPC)

where MPC = 0.5

= 1 / (1 - 0.5)

= 1 / 0.5

= 2

Increase in income = Gross investment × multiplier

= $100 × 2

= $200 million

6 0
3 years ago
Leonardo, who is married but files separately, earns $90,000 of taxable income. He also has $8,750 in city of Tulsa bonds. His w
UkoKoshka [18]

Answer: 17.56%

Explanation:

Given that,

Leonardo taxable income = $90,000

Tulsa bonds = $8,750

Theresa taxable income = $50,000

Computation of Leonardo's Tax:

According to the tax rate schedule,

Total Tax = Tax + 24% of taxable income over $82,500

                = $14,089.50 + 24% × $7,500

                = $14,089.50 + $1,800

                = $15,889.5

Computation of Theresa's Tax:

According to the tax rate schedule,

Total Tax = Tax + 22% of taxable income over $38,700

                = $4453.50 + 22% × $11,300

                = $4453.50 + $2,486

                = $6939.5

Total tax on Leonardo's income and Theresa's income:

= $15,889.5 + $6939.5

= $22,829

Effective tax rate = \frac{Total\ Tax}{Total\ Taxable\ Income}\times100

                              = \frac{22,829}{130,000}\times100

                              = 17.56%

5 0
3 years ago
In which situation would a certificate of deposit (CD) be the best banking choice
anzhelika [568]

A certificate of deposit (CD) would be the best banking choice when the interest rate is determined ahead of time and there is an assurance to get back what you put in plus interest once the CD matures.  If you leave the money alone during the investment period then the bank will pay you an interest rate slightly higher than what you would have earned in a money market or checking account. Thus, all gains from certificate of deposits are taxable as income unless they are in a tax-deferred (IRA) r tax-free (Roth IRA) account. 

3 0
2 years ago
Read 2 more answers
Does Apple's common stock have a par value? If so, how much was the reported par value per share? How many shares of common stoc
vlabodo [156]
The par value for shares of Apple is $0.000015
7 0
3 years ago
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