If an investor is seeking capital gains and income from their investments, what type of investment would BEST suit these objecti
1 answer:
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Answer:
Ans. The amount invested at 13% was $1,595.97 and $14,685.03 were invested at 15%
Explanation:
Hi, you can solve this by using 2 equations, so let X be the portion of the money invested at 15% and Y be the amount invested at 13%. So the equation for the whole amount is:
Now, the problem says that the money that you earn by investing at 15% exceeds the money received as interest in your investment of 13% by $1,995.27, this leads us to the second equation.
Now, to make it a little more friendly, we just have to go ahead and divide everything by 0.15, so we get.
Now, in our first equation, we substitute X fo 0.8867(Y)+13,301.8 and we will see this.
Now, we solve for Y
So the money invested at 13% was $1,595.97 therefore, the money invested at 15% was $16,281 - $1,595.97 = $14,685.03
And we can check this results like this. The money invested at 15% will return an amount of:
And the money invested at 13% will return
Substracting, we would found that the difference is:
Best of luck.
Answer:
<em><u>For Break Even Point</u></em>
Oil Change: $ 210,000
Brake repair: $ 90,000
<em><u>For target profit</u></em>
Oil Change: $ 350,000
Brake repair: $ 150,000
Explanation:
Now, we solve for
the target mix:
sales weight times contribution ratio
0.70 x 0.20 + 0.30 x 0.4 = 0.26
Now we solve the break even point for each service outlet:
Oil Change: 78,000 / 0.26 = 300,000 sales revenue
we multiply by the weight to know eahc type of serivce sales revenue
Oil Change: $ 300,000 x 0.7 = $ 210,000
Brake repair: $ 300,000 x 0.3 = $ 90,000
Now we solve for target profit:
(78,000 + 52,000) / 0.26 = 500,000
Oil Change: $ 500,000 x 0.7 = $ 350,000
Brake repair: $ 500,000 x 0.3 = $ 150,000