The global capital market limits the opportunity for businesses and individuals to build a diverse financial portfolio.

Product Pricing: Single Product Presented is the 2017 contribution income statement of Grafton Products. GRAFTON PRODUCTS Contri

hodyreva [135]

Answer:

a)647,000

b)658,000 yes as increase net income

c) 2,480,000

Explanation:

a) current net income : 842,000

less 13,000 x 12 increce in variable manufacturing (156,000)

less increase in fixed MO <u> (39,000) </u>

647,000

b)

Sales 3,200,000 (16,000 x 200)

Variable <u> (1,408,000)</u> 988,000x16,000/13,000 + 156,000

Contribution 1,792,000

Fixed MO (819,000)

Fixed S&A<u> (315,000) </u>

Net Income 658,000

c)

$\frac{Fixed\:Cost + Target \: Profit}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

$\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio$

1,792,000 / 3,200,000 = 0.56

$\frac{1,134,000 + 254,800}{0.56} = Break\: Even\: Point_{dollars}$

4 0

4 years ago

Target Market Selection Process:

I am Lyosha [343]

Answer:

The answer is Concentrated Marketing

Explanation:

Concentrated Marketing is a strategy whereby a product is developed and marketed for a very well defined and specific segment of the consumer population.

6 0

3 years ago

Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.77 direct labor

olasank [31]

Answer:

Total direct labor cost= $122,752

Explanation:

Giving the following information:

Each unit of output requires 0.77 direct labor-hours.

The direct labor rate is $11.20 per direct labor-hour.

Production budget:

October= 7,100 units

November= 6,900 units

Minimum hours= 5,480 hours

First, we need to determine the number of hours required for each month.

October= 7,100*0.77= 5,467 hours

November= 6,900*0.77= 5,313 hours

Direct labor budget:

October= 5,480*11.2= 61,376

November= 61,736

Total cost= $122,752

3 0

3 years ago

If a country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, then

LekaFEV [45]

Answer: falls and the net capital outflow of other countries rise

Explanation:

Net capital outflow refers to the net flow of funds that's invested abroad by a particular country at a particular period. It should be noted that a positive net capital flow simply means that such country invests more outside more than than what the other parts of the world invests in it.

Given the question above, since the country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, it means that the net capital outflow of that country falls and the net capital outflow of other countries rise.

3 0

3 years ago

"Davcher, Inc. is considering a project for next year, which will cost $5 million. Davcher plans to use the following combinatio

AfilCa [17]

Based on the U.S. Treasury bond rate, the market return and the beta, Davcher's expected rate of return would be 6.5%.

<h3>What is the expected rate of return?</h3>

Using the Capital Asset Pricing Model (CAPM), the expected rate of return would be:

= Risk free rate + Beta x Market premium

Market premium:

= Market return - risk free rate

= 8% - 3% rate of treasury bonds

= 5%

Expected rate of return is:

= 3% + 0.70 x 5%

= 6.5%

Find out more on the Capital Asset Pricing Model at brainly.com/question/15851284.

6 0

2 years ago