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3 years ago

Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect.

Business

1 answer:

ludmilkaskok [199]3 years ago

6 0

Answer and Explanation:

C. In the short run, a firm cannot incur an economic loss.

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The following information applies to the questions displayed below) Serendipity Sound, Inc., manufactures and sells compact disc

OlgaM077 [116]

Answer:

$25.50
90,000 units
140,000 units

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

= (25 - 19.8) / 25

= 0.208

New Direct labor = 5.0 * ( 1 + 8%)

= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

0.208 = (Selling price - 20.20) / Selling price

0.208 * Price = Price - 20.20

0.208Price - Price = -20.20

-0.792Price = -20.20

Price = -20.20/-0.792

Price = $25.50

2. Breakeven = Fixed Cost / Contribution Margin

Contribution Margin = Selling price - Variable cost

= 25 - 19.8

= $5.20

= 468,000/5.2

= 90,000 units

3. To earn $260,000;

= (Fixed Cost + 260,000) / Contribution margin

= (468,000 + 260,000) /5.2

= 140,000 units

6 0

3 years ago

John is auditing MegaCorp. He finds an accounts payable for 10,000 cases of ball bearings. He checks to make sure the paper actu

zzz [600]

Your answer is.........B. Vouching.

4 0

3 years ago

Round Barn stock has a required return of 11.00% and is expected to pay a dividend of $2.35 next year. Investors expect a growth

34kurt

Answer:

$47

Explanation:

Given that,

Required return = 11.00%

Expect a growth rate = 6.00%

Expected to pay a dividend next year = $2.35

Stock Price:

= Dividends (Div) ÷ (Expected Return (R) - Dividend Growth Rate (G))

= $2.35 ÷ (11% - 6%)

= $2.35 ÷ (5%)

= $47

Therefore, the current fair price for the stock is $47.

7 0

3 years ago

A stock is trading at $58. You believe there is a 70% chance the price of the stock will increase by 10% over the next 3 months.

MAXImum [283]

Answer: $498

Explanation:

A Put is an option that will only be exercised if the price of the underlying security which is the stock in this case, falls below the current price of $58.

This means that we will not include the 70% chance of increase in our calculation.

In a contract, there are 100 shares.

Expected profit = Contract price - (Prob. of dropping by 10% * 10% of stock) - (Prob. of dropping by 20% * 20% of stock)

= 730 - ( 20% * 10% * 58 * 100) - (10% * 20% * 58 * 100)

= 730 - 116 - 116

= $498

3 0

3 years ago

ACME labs bought a new inspection device for $182,730. The accounting department has estimated that the device will have an annu

enyata [817]

Answer:

salvage value is $16,368.34

Explanation:

given data

initial cost = $182,730

annualized capital cost = $42,442

service life = 7 year

interest rate = 15%

solution

we get here first present value that is

annual value = rate × $\frac{present\ value}{(1 - (1+ r)^{-t})}$ .................1

put here value and we get

42,442 = 15% × $\frac{present\ value}{(1 - (1+ 0.15)^{-7})}$

solve it we get

present value = $176,576.5343

present value = initial investment + salvage value ..............2

we take here present value and initial investment will be negative

-176,576.5343 = -182,730 + salvage value(p/f,15%,7)

-176,576.5343 +182,730 = salvage value(p/f,15%,7)

6,153.465 = salvage value × 0.3759

salvage value = 16,368.34

3 0

3 years ago