Answer:
break even point in unit =5440 units
break even point in sales = $544000
total sale = $680000
Explanation:
given data
Current operating income = $34,000
Selling price = $100
margin ratio = 25%
to find out
Bay Area Cycle’s break even point in units and total sales dollars
solution
we get here first break even point that is express as
break even point in unit =
..................1
break even point in unit =
break even point in unit =5440 units
so
break even point in sales =
..................2
break even point in sales = 
break even point in sales = $544000
and
total sales will be
total sale =
..................3
total sale =
total sale = $680000
Answer:
A. $19,034
Explanation:
The computation of the present value for 20 years cash flow is shown below:
For the First 10 years
Given that
Payment for first 10 years = $2,000
Discount rate = 11%
Now the present value is
= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10
= 11,778.46402 ..............(1)
For the Next 10 years
Given that
Payment for next 10 years = 3,500
Discount rate = 11%
Now the present value is
= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10
= 20,612.312
So, today present value is
= $20,612.312 ÷ 1.1110
= 7,259.339 ...........................(2)
Now
Total present value is
= $7,259.339 + $11,778.46402
= $19,034
Answer:
The correct answer is letter "B": False.
Explanation:
The Pure Expectations Theory uses long-term interest rates to predict future interest rates in the short run. Investors consider different investments to predict future interest rates. In the example, the statement indicates the opposite. It is taking a short-term interest rate (one-year bond), to calculate the return of a long-term investment (five-year bond).
Answer: D) Favorable Unfavorable
Explanation:
To begin, it is worthy of note that in Variance, if something is said to be Favourable, it means a negative Variance because less resources than planned were spent. When it is Unfavourable, it means a positive balance variance.
Now, The formula for Labour Rate Variance is as follows,
LABOUR RATE VARIANCE=(ACTUAL RATE-STANDARD RATE)*ACTUAL HOURS WORKED
Seeing as the old workers were being paid $18, and the new office ones were paid $10, we can see that to be the actual rate was less than the standard rate. This would mean that there was a FAVOURABLE balance.
Labour Efficiency is calculated in a similar way,
LABOUR EFFICIENCY VARIANCE=(ACTUAL HOURS WORKED-STANDARD HOURS)*STANDARD RATE.
Now, these are Office workers not assemblyline workers. They do not have the experience to work in such a way that they produce as fast or as efficiently as their striking Assemblyline colleagues.
This would then mean that their actual hours will be MORE than the standard rate which can only lead to an UNFAVOURABLE BALANCE.
Answer:
A or D
Explanation:
I mean all of them are very valid reasons in website design but one of the reasons why most people avoid sites is either because there's too much clutter in either wording OR visuals