The deadweight loss from monopoly is shown graphically by the area between the

How much money invested at 5% compounded continuously for 3 years will yield $820?

Leno4ka [110]

Percentage of interest at which the money is invested = 5%
Time for which the money is invested = 3 years
The final amount after 3 years = $820
Let us assume the principal amount = x dollars
Then
820 = x (1 + 0.5)^3
820 = x(1.05)^3
x = 820/(1.05)^3
= 708.35 dollars
From the above deduction, we can conclude that the principal amount invested was $708.35.

6 0

4 years ago

Read 2 more answers

Solano Company has sales of $580,000, cost of goods sold of $410,000, other operating expenses of $54,000, average invested asse

Anon25 [30]

Answer:

1.

ROI=6.44%

Investment Turnover=0.32

Profit Margin=20%

Residual Income (RI) = -$46,000

2.

a) ROI =9.28%, RI= $5,000

b) ROI=7.19%, RI= -$32,500

c) ROI=6.15%, RI= -$51,400

d) ROI=5.4%, RI= -$76,600

e) ROI=6.44%, RI= -$154,000

Explanation:

1. ROI is calculated as (Operating profit/Average net asset/Investment)*100.

Investment turnover is calculated as Net sales/Average net asset/Investment.

Profit Margin is calculated as Operating profit/Total sales.

Residual Income is calculated as Operating profit-(Average net asset/Investment * Hurdle rate).

Note: Operating profit= Sales-(Cost of goods sold+Operating expenses)

2.

a) 30% increase in sales & cost of goods sold will increase the ROI & Residual income.

b) Decrease in operating expense will increase the operating income, thereby increasing the ROI & RI.

c) Increase in operating expense by 10% will reduce the operating income, thereby decreasing the ROI & RI.

d) Increase in average invested assets by $340,000 will reduce the ROI & RI.

e) Change in hurdle rate will not change the ROI; however, it will decrease the residual income (RI).

6 0

4 years ago

Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and

nalin [4]

Answer:

Following are the solution to this question:

Explanation:

In point 1:

Date Title post reference Dr. Cr. 30-sep Method work – refining 141 388000

Materials 131 385000

In point 2:

Date Title post reference Dr. Cr. 30-sep Method work – refining 141 141000

Payable Wages 251 141000

In point 3:

Date Title post reference Dr. Cr. 30-sep Method work – refining 141 96800

Factory overhead- refining 151 96800

In part B:

Date Title post reference Dr. Cr. 30-sep Method work – Sifting 142 625600

$(388000+141000+96800+(29800-30000))$

Method work – refining 141 625600

5 0

3 years ago

Where would it be right to apply the product concept?

Nady [450]

Answer:

In marketing

Explanation:

The Product concept is the understanding of the best features of a product which a marketer wishes to sell. Before a product is sold, it is very important that the marketer gets a proper understanding of the product. This knowledge would help him convince the customer that the product is the best and would actually meet his needs.

For producers, realizing this need of customers would help them focus on making products with superior quality that can as well meet the requirements of customers. These products should also be able to thrive in a very competitive environment.

6 0

3 years ago

If bonds are issued at 101.25, this means that ____________________

Whitepunk [10]

Answer:

c.a $1,000 bond sold for $1,012.50.

Explanation:

We assume the par value is $1,000 and since the bond is issued at 101.25 that means its selling price is

= $1,000 × 101.25%

= $1,012.50

Since the bond is issued more than the face value that reflects the premium and if the bond is issued less than the face value so it is issued at a discount

So the right option is c.

4 0

3 years ago