Answer:
Forecasted contribution margin income statement for 2020
Sales (10,400 units at $280 each) $ 2,912,000
Variable costs (10,400 units at $202 each) ($ 2,100,800)
Contribution margin $ 811,200
Fixed costs ($567,000 + $44,500) ($ 611,500)
Pretax Income $199,700
Explanation:
Adjust the 2019 Contribution Income Statement by :
- Decreasing variable costs by $8 per unit and,
- Increasing Fixed cost by $44,500
Answer:
Contribution margin = $16
Explanation:
Contribution is the difference between the selling price and the variable cost.
Contribution margin = (Sales - variable cost )
Variable cost = Variable manufacturing + Variable selling cost
Variable cost = 18 + (15%× 40) = 24
Contribution margin = 40 - 24 = $16
Contribution margin = $16
Answer:
Beta is 2.25
Explanation:
The return total return on the stock can be computed using the holding period return stated below:
=Pi-Po+D/Po
Pi is the expected price of the bond at year end which is $117
Po is the initial stock price of $100
D is the dividend expected at year end
holding period return=($117-$100+$1)/$100=18.00%
In Capital Asset Pricing Model,expected return formula is as follows:
expected return=risk free rate+beta*market risk premium
18.00%
=4.5%+Beta*6.0%
18.00%-4.5%=Beta*6.00%
13.500%=Beta *6.00%
Beta=13.500%
/6.00%
Beta=2.25
Answer: The third option (option C) is the right answer.
Explanation:
The paragraph which has the best coherence is option C. This is because in the case of the third option, it explains that the flow of ideas is constant from one sentence to another.
The first sentence serves as an introduction which talked about the reasons why duties should be divided based on each member’s expertise. The sentences moved smoothly and also logically from one sentence to another sentence. An example is the sentence that “if your company does not have a public relations executive…..”. This should logically proceed the sentence that says that communication ought to be overseen by the director of PR.
This shows that the third option possesses a consistent and logical train of thought as well.