Answer:
<u>Break Even point </u>Q = 500000
<u>Shut Down Point </u> P < 5
Explanation:
<u>Break Even point</u> is where Total Revenue = Total Cost.
Total cost = 500000 + 5Q, price = 6 (Given) , Total revenue = Price x quantity
So, TR = TC implies : 500000 + 5Q = 6Q → 500000 = 6Q - 5Q
Q = 500000
<u>Shut Down Point </u>is where firm's Price is < its Average Variable Cost .
AVC is the variable cost on per unit output, is found out by average of variable component of cost function. C = 500000 + 5Q implies variable cost = 5Q , so AVC = 5Q / Q = 5
So, the firm would shut down if its price would go below AVC , ie if P < 5
Answer:
return on assets= 0.09= 9%
Explanation:
Giving the following information:
The Kingwood Company reported a net income of $40,000 and the average total assets of $440,000.
To calculate the return on assets, we need to use the following formula:
return on assets= net income / average total assets
return on assets= 40,000 / 440,000= 0.09
Answer:
Final Value= $483,603.80
Explanation:
Giving the following information:
You plan to deposit $4,700 at the end of each of the next 25 years into an account paying 10.3 percent interest
We need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit= 4,700
n= 25
i= 0.103
FV= {4,700*[(1.103^25)-1]} / 0.103= $483,603.80
Answer:
b.
Explanation:
The company sold 6 advertising spaces that would run from July to December for $400 each.
Total amount received for selling 6 advertising spaces = 6×$400
Total amount received for selling 6 advertising spaces = $2,400
The advertising spaces will run for 6 months i.e., July to December.
So, adjusting entry on 31st July would record the revenue earned for 1 month only.
Total revenue = $2,400
No. of months = 6
Revenue for 1 month = $2,400/6
Revenue for 1 month = $600
Thus, journal entry on receipt of cash as well as adjusting journal entry has been shown below:
Answer:
Based on the CAPM approach, the cost of common from reinvested earnings is e. 10.93%
Explanation:
Hi, first, let´s introduce the formula for the CAPM approach.

Therefore:

So, the cost od common from reinvested earnings is 10.93%, which would be option "e".
Best of luck.