The profit margin is the financial gain from a sale after the costs of providing the sold product have been deducted. Thus, the statement is true.
<h3>What is the profit margin?</h3>
Profit margin is the portion of sales that a company keeps after all costs are subtracted. It essentially displays the percentage of each dollar of sales that is kept as profit. A 15% profit margin, for instance, means that a company keeps $0.15 from every dollar of sales produced.
Comparing the firm's operations to those of a best-in-class company, maybe in a different industry, is another way to increase your profit margin. This comparison could point out several operational tweaks that could be done to raise profit margins.
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Answer:
5.01%
Explanation:
The bond nominal yield to call is 5.01%
Answer:
563.4 cents
Explanation:
A margin call occurs when the margin of an investment falls bellow the maintenance margin.
In this problem, the production costs for 5,000 bushels are given by:
The price per bushel that yields a margin of $1,100 is:
You will receive a margin call at a price of 563.4 cents per bushel.
Answer:
The company should credited on the Cash account and the Cash Discount Receipt for the settlement of the inventory with 10 days.
Explanation:
The detailed entry will be:
19th Sep
Dr Account Payable $40,000
Cr Cash $39,200
Cr Cash Discount Receipt $800
( to record payable settlement and the receipt of cash discount)
Working note: As the company paying with 10 days, the supplier will allow a 2% discount on it net inventory purchase ( 44,000 - 4,000 = $40,000)
Thus, the discount will be 40,000 x 2% = $800 and Cash repayment will be 40,000 x (1-2%) = $39,200.
Interest rates and bond prices have an adverse correlation. Bond prices grow during periods of low-interest rates and decline during periods of high-interest rates.
<h3>What is the interest rate?</h3>
The cost of borrowing and the rewards for saving are both indicated by the interest rate. Since there is a premium if the coupon rate is higher than the market rate, the bond's price will be higher. Bond prices will decrease if the coupon rate is lower because there will be a discount.
The price of long-term bonds is more affected by interest rates than the price of short-term bonds. A bond's price varies depending on how long it is.
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