Answer:
Break-even price = $7
Explanation:
<em>The break-even price is the price at which the the total contribution from the sale is equal to the fixed cost of $300,000.</em>
(x- 4)× 100,000 = 300,000
100,000X - 400,000 = 300,000
100,000X = 300,000 + 400,000
x= 700,000/100,000
X = $7
Break-even price = $7
Answer: $36833
Explanation:
The net income will be calculated as:
Service revenue = $42700
Less: Debt expense = $8800 × 8/12 = $5867
Net income = $42700 - $5867 = $36833.
Therefore, based on the information and the calculation solved above, we can see that the net income is $36833
Answer:
A. 3.82
Explanation:
First, find the expected return of the stock;
E(r) = SUM(prob * return)
E(r) = (0.35 * 0.15 ) + (0.65 * 0.07)
= 0.0525 + 0.0455
=0.098 or 9.8%
Next, use the variance formula to find the stock's standard deviation;
σ² = 0.35( 0.15 - 0.098)² + 0.65( 0.07 - 0.098)²
σ² = 0.0009464 + 0.0005096
σ² = 0.001456
As a percentage, it becomes; 0.001456 *100 = 0.1456%
The variance is therefore 0.1456%
Find standard deviation;
Standard deviation = SQRT (0.001456)
STDEV = 0.03816 or 3.82%
Answer:
More freedom is the advantage
Answer:
The answer is $53,732.
Explanation:
The value of the equipment reported on Libby Company's balance sheet is equal to:
Cash payment at purchase + Present value of 8 equal semiannual payment, $6,700 each discounted at 3% ( because semiannual payment is made for 4 years so we have 2 x4 = 8 payments; and annual borrowing rate is 6% so we have discount rate = 6% /2 = 3%).
with:
Cash payment at purchase = $6,700;
Present value of 8 equal semiannual payment, $6,700 each discounted at 3% = (6,700/3%) x ( 1 - 1.03^(-8) ) = $47,032 ( that is, apply the formula to find present value of annuity).
we have:
The value of the equipment reported on Libby Company's balance sheet = 6,700 + 47,032 = $53,732.