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arsen [322]
3 years ago
11

Antonio would like to replace his golf clubs with a​ custom-measured set. A local sporting goods megastore is advertising custom

clubs for ​$570​, including a new bag.​ In-store financing is available at 2.98 ​percent, or he can choose not to renew his ​$300 certificate of deposit​ (CD), which just matured. The advertised CD renewal rate is 2.17 percent. Antonio knows the​ in-store financing costs would not affect his​ taxes, but he knows​ he'll pay taxes​ (25 percent federal and 5.75 percent​ state) on the CD interest earnings. Should he cash the CD or use the​ in-store financing?​ Why?
Business
1 answer:
Firdavs [7]3 years ago
8 0

Answer:

CD rate is 2.17% before taxes.

Total tax percentage = 25% + 5.75% = 30.75%

After tax rate of CD = 2.17%(1 - .3075) = 1.5027%

Since after tax rate of CD is less than 5.38%, he should cash in the CD to pay for the golf clubs rather than use the store financing

Explanation:

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A company has a unit contribution margin of $80 and a contribution margin ratio of 50%. what is the unit selling price?
lora16 [44]

If a company has a unit contribution margin of $80 and a contribution margin ratio of 50%. Then its unit selling price is $160 therefore option (d) is the correct answer.

Contribution margin, or dollar contribution in keeping with the unit, is the selling fee in step with the unit minus the variable price in line with the unit. "Contribution" represents the portion of sales that isn't eaten up by variable prices and so contributes to the coverage of fixed fees. The contribution margin is computed because of the promoting charge per unit, minus the variable value according to the unit. Additionally known as greenback contribution per unit, the measure indicates how a specific product contributes to the general income of the business enterprise.

To calculate the unit selling price use the formula

Unit selling price = contribution margin / contribution margin ratio

Unit selling price = $80 / 50%

Unit selling price = $160

Therefore option d) $160 is the correct answer

The contribution margin ratio of a business is the same as its revenue much less all variable fees, divided by means of its sales. It represents the marginal gain of producing one more unit.

Learn more about the Contribution margin here brainly.com/question/24881206

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3 0
2 years ago
Consumer ________ helps answer questions such as why people choose one product or brand over another, how they make these choice
neonofarm [45]

Answer: Behavior

Explanation: Consumer Behaviour is the way consumers respond to the purchase of a certain products and services, consumer behaviour is affected by various factors such as PRICE, QUALITY, QUANTITY,INCOME etc.

Certain consumers have specific interest in certain products or services, due to brand loyalty which has emanated from the consistent quality and other product features which they have enjoyed in such products.

6 0
3 years ago
Can someone help me with this business worksheet
Sholpan [36]

Answer:

uhm heyyyy I can help

8 0
3 years ago
Wallace Heating is attempting to estimate its costs of manufacturing heating ducts for the coming year using the high-low method
Anna11 [10]

Answer:

Variable Cost per hour is $4.86

Explanation:

given data

Highest Cost = $27,049

Lowest Cost = $19,772

Highest Cost Driver = 4,168  hours

Lowest Cost Driver =  2,672  hours

solution

we get here Variable Cost per hour that is express as

Variable Cost per hour = (Highest Cost - Lowest Cost) ÷ (Highest Cost Driver - Lowest Cost Driver)   ......................1

put here value and we get

Variable Cost per hour = \frac{27049-19772}{4168-2672}    

Variable Cost per hour = \frac{7277}{1496}    

Variable Cost per hour = 4.86

so Variable Cost per hour is $4.86

5 0
3 years ago
asset w has an expected return of 15.7 percent and a beta of 1.75. if the risk-free rate is 3.3 percent, what is the market risk
Marizza181 [45]

The market risk premium is 14.12. A market risk premium in finance and economic is used to measure how much the level of risk.

A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.

To find the amount of risk premium, we can calculate it use beta of the stock formula:

Beta of the stock = (expected return - risk-free rate) ÷ risk premium

Because we need the amount of  risk premium, then it will be:

Risk premium = Beta of the stock/(expected return - risk-free rate)

Risk premium =  1.75/(15.7% - 3.3 percent)

Risk premium = 1.75/(0.157 - 0.033)

Risk premium = 1.75/0.124

Risk premium = 14.12

Thus, the market risk premium is 14.12.

Learn more risk premium, here brainly.com/question/28235630

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5 0
1 year ago
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