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Anton [14]
3 years ago
15

Radar Company sells bikes for $300 each. The company currently sells 3,750 bikes per year and could make as many as 5,000 bikes

per year. The bikes cost $225 each to make: $150 in variable costs per bike and $75 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 750 bikes for $250 each. Incremental fixed costs to make this order are $50,000. No other costs will change if this order is accepted.

Business
1 answer:
natka813 [3]3 years ago
4 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Select all that apply.
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Answer:

The most applicable answers are,

*individuals borrow less money

*interest rates rise

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A ______ company is one that does business in at least one country outside of its country of origin.
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Ella epoch fashion received notice that its bank has processed an nsf check. what would be the result for bella epoch fashion?
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Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10
Tomtit [17]

It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.

<h3>How to calculate the expected rates of return</h3>

E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%

E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%

Therefore, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.

The standard deviation will be calculated thus:

Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2

= 1.5%

Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2

= 1.1%

Therefore, the standard deviation of stocks A and B are 1.5% and 1.1% respectively.

Learn more about rate of return on:

brainly.com/question/25821437

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