Answer:
Sales Revenues 26100
COGS <u> 5655</u>
gross profit 20445
rent expense 1600
depreciation expense 200
operating expense <u>2600</u>
net income 16045
Sales Revenues 26100
Variable Cost <u> 6305 </u>
Contribution margin 19795
rent expense 1600
depreciation expense 200
fixed operating expense<u> 1950 </u>
net income 16045
Explanation:
traditional:
COGS
$12 tub / 30 ice cream cones = $0.40
+ 0.25 ice cream cones
total per unit 0.65
8,700 x 0.65 = 5655
Gross profit: sales revenue less COGS
then, we subtract the rent expense, depreicaiton expense and operatign expenses to get net income.
contribution the variable cost will be subtracted from the sales revenues
that will include the 75% of the operating expenses
The difference between sales revenue and variable cost is called contribution margin.
The account that’s compounded continuously is the better investment long-term because you accrue interest on top of interest on a daily basis which grows exponentially.
Answer:
The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.
Explanation:
She may immediately sell the bonds but it is unclear how much money they will sell for.
Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000 bond investment for 10 years, she would have been assured the bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.
Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.
In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.
Answer:
The correct answer is option d.
Explanation:
The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.
Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.
Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.
