Answer:
Retained Earnings Account will show a balance of $130000
Explanation:
Retained Earnings Balance is Calculated as Follows
$
Opening Retained Earnings 80000
<u><em>Add</em></u> Profit for the year (125000-60000) 65000
<u><em>Less</em></u> Dividends (15000)
Retained Earnings at End of year 130000
The Cambridge's gross profit from this sale was $ 60,000.
<h3>
What is gross profit?</h3>
Gross profit is the amount a business makes after deducting the expenses associated with manufacturing and marketing its products or providing its services. Gross profit, which appears on an organization's income statement, can be calculated by subtracting the cost of goods sold (COGS) from revenue. An organization's income statement will contain numbers. Other of names for the gross profit include sales profit and gross income. Generally speaking, fixed costs are not included in gross profit (that is, costs that must be paid regardless of the level of output). Rent, advertising, insurance, salaries for staff not involved in the production directly, and office supplies are some examples of fixed costs.
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Answer:
Investment needed for breakeven is 784.48 MM
Explanation:
Working is attached with this answer in PDF file, please find it.
The project will be at breakeven when NPV will be equal to 0
NPV = -Investment + Present value of year 1 cash flows + Present value of year 2 cash flows + Present value of year 3 and onwards cash flows
0 = - investment + 5/1.03 + 14.2/(1.04)2 + 15.326 / (0.05 - 0.03)
0 = -Investment + 4.854 + 13.129 + 766.500
Investment = 4.854 + 13.129 + 766.500
Investment = 784.483
(1.05)3
The investment will be less than $ 679.94 MM. At time 0 , the project will be at breakeven when the investment invested intially will be less than $ 669.94 MM.
Answer:
Option (B) is correct.
Explanation:
Marginal benefit refers to the benefit that a consumer can get from consuming an additional unit of a commodity.
If the marginal benefit is greater than the marginal cost then a consumer is continuing consuming the additional units of a commodity.
A consumer uses the marginal analysis for deciding whether to consume an extra unit of a commodity or not. In this analysis, a consumer compares the marginal benefit with the marginal cost.
The answer is No and we know this<span> because it doesn't consider the relative elasticises of supply and demand.For example, If demand decreases then the price decreases but if the supply decreases the proces will not be affected. </span>