Answer:
The required probability is 0.066807
Explanation:
Given,
σ = 220
μ = 1200
The probability that a random selection of computer which will have the price of at least $1,530 is computed as:
P (X ≥ 1530 ) = 1 - P (X ≤ 1530)
= 1 - P ( X - μ / σ)
= 1 - P ( 1530 - 1200 / 220)
= 1 - P ( z ≤ 1.5)
= 1 - 0.933193
= 0.066807
Note: This 0.933193 value is taken from the z table.
Answer:
(i) The farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units
(ii) The farm cannot cover its revenue using its total variable cost, therefore the farm will shut down
(iii) The two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200)
Explanation:
(i)According to given data, When output is 200 but price is $20, this price is equal to ATC, so the farm breaks even. But since this price is higher than AVC of $15, the farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units.
(ii) When output is 200 but price is $12, this price is equal to ATC, so the farm makes economic loss. Also, this price is lower than AVC of $15, so the farm cannot cover its revenue using its total variable cost, therefore the farm will shut down.
(iii) The farm's supply curve is the portion of its Marginal cost (MC) curve above the minimum point of AVC. Since price equals MC, the two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200).
Answer:
$814.10
Explanation:
Calculation to determine what the price of the bond now
Using this formula
Bond price = PV of coupon payments + PV of face value
Bond price= C×((1 / r) – {1 / [r(1 + r)t]}) + FV / (1 + r)t
Let plug in the formula
Bond price= [(.080 ×$1,000) / 2] ×[[1 / (.12 / 2)] – (1 / {(.12 / 2)[1 + (.12 / 2)](7 ×2)})] + $1,000 / [1 + (.12 / 2)](7 ×2)
Bond price= $814.10
Therefore the price of the bond now is $814.10
Answer:
$48
Explanation:
Contribution = Sales - Variable Costs
where,
Sales = $120
Variable Costs = $120 x 10% + $60 = $72
therefore,
Contribution = $120 - $72 = $48
The contribution margin per unit is: $48
