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Veronika [31]
3 years ago
7

Sales $9,600,000 Variable Expenses 6,810,000 Contribution Margin 2,790,000 Fixed Expenses 1,926,000 Net Operating Income $ 864,0

00 Average Operating Assets $4,000,000 At the beginning of this year, the company has a $1,200,000 investment opportunity with the following characteristics: Sales $4,200,000 Fixed Expenses $ 960,000 Contribution Margin Ratio 30% If the company pursues the investment opportunity and otherwise performs the same as last year, the combined margin for the entire company will be closest to:
Business
1 answer:
kykrilka [37]3 years ago
8 0

Answer:

8.43%

Explanation:

The computation of combined margin is shown below:-

For computing the combined margin for the entire company first we need to compute the combined net operating income and combined sales which is here below:-

Combined net operating income = Existing operating income + Operating income from new investment opportunity

= $864,000 + ($4,200,000 × 30% - $960,000)

= $864,000 + ($1,260,000 - $960,000)

= $864,000 + $300,000

= $1,164,000

Combined sales = $9,600,000 + $4,200,000

= $13,800,000

Combined margin for entire company = Combined net operating income ÷ Combined sales

= $1,164,000 ÷ $13,800,000

= 8.43%

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Answer:

4%=$566,697.09  

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Explanation:

The issue price of the bond can be computed using the pv formula in excel spreadsheet as below:

=-pv(rate,nper,pmt,fv)

the rate is the market of 4% divided by 2

nper is the number of semiannual interest the bonds would pay which is 7 years multiplied by 2 i.e 14

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fv is the face  value repayable on redemption which is $505,500

for market rate of 4%

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for market rate of 6%

=-pv(3%,14,15165 ,505500)=$ 505,500.00  

for market interest of 8.5%

=-pv(4.25%,14,15165 ,505500)=$ 439,842.50  

5 0
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1 year ago
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