AG Inc. made a $10,000 sale on account with the following terms: 1/15, n/30.
1 answer:
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Answer:
B. 5.40 percent
Explanation:
Let today's price per share be $X
Total return = [ (New value + Dividend - Old value) / Old price ] *100
Old value = $24 *540 = $12,960
Next, plug in the numbers to the formula;
0.063 = [ (540X + 117 - 12,960)/ 12,960 ]
0.063 =
multiply both sides by 12,960;
0.063 *12,960 = 540X - 12,843
816.48 = 540X - 12,843
Add 12,843 from both sides and solve for X;
816.48 + 12,843 = 540X
13,659.48 = 540X
Divide both sides by 540;
13,659.48/ 540 = X
X = 25.295
Therefore, today's price per share = $25.30
Capital gains yield= (Today's price - Original price) /Original price
Capital gains yield = (25.295 -24) / 24
=0.05396 or 5.40%
Therefore, Capital gains yield is 5.40%
A firm expects to sell 25,500 units of its product at $16 per unit. pretax income is predicted to be $60,500. If variable costs are $8 per unit, total fixed costs must be $143,500.
Fixed costs are costs that stay constant no matter changes in production volume, implying that irrespective of whether output rises or decreases, total fixed costs remain constant within the relevant range.
Rent, labor, depreciation, insurance, and other fixed costs per unit fluctuate over the relevant range, on the contrary.
Given,
Selling price = $16
Variable cost per unit = $8
Units sold = 25,500
Pretax income = $60,500
Substituting the provided information into the above calculation yields,
Contribution margin =
= $204,000
Formula:
This symbolizes,
Substituting the provided information into the above calculation yields,
= $143,500
Hence, the answer is $143,500.
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