Answer:
the expected return of a stock is 10.542%
Explanation:
The computation of the expected return on a stock is shown below:
Expected return on stock is
= Risk free rate + beta × (market rate of return - risk free rate)
= 2.2% + 0.86 × (11.9% - 2.2%)
= 2.2% + 0.86 × 9.7%
= 2.2% + 8.342
= 10.542%
hence, the expected return of a stock is 10.542%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
a
Explanation:
Vertical integration is when a firm acquires a business further in its production chain. For example, a sandwich company purchasing a bakery
Answer: $24
Explanation:
Given that,
Two workers serve = 16 customers per hour
Three workers serve = 22 customers per hour
Each customer spends an average of $4 in the store.
Total revenue from Two workers = 16 × $4
= $64
Total revenue from Three workers = 22 × $4
= $88
Therefore, the marginal benefit of hiring the third worker would be:
= Total revenue from Three workers - Total revenue from Two workers
= $88 - $64
= $24
Answer:
Instructions are below.
Explanation:
Giving the following information:
Units Produced 20,000
Units Sold 17,000
Unit Sales Price $ 240
Full Manufacturing Cost Per Unit $97
<u>Under the absorption costing method, the fixed manufacturing overhead is part of the product cost.</u>
Income statement:
Sales= (17,000*240)= 4,080,000
Cost of goods sold= (17,000*97)= (1,649,000)
Gross profit= 2,431,000
Variable Selling Expenses= (71,000)
Fixed General and Administrative Costs= (88,000)
Net operating income= 2,272,000
Answer:
6,704 units
Explanation:
The computation of the number of units sold is shown below:
= (Fixed expenses + target profit) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $90 per unit - $36 per unit
= $54 per unit
So, the number of units sold is
= ($162,000 + $200,000) ÷ ($54 per unit)
= 6,704 units
