Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter
1 answer:
Answer:
<u>PV = 2,464,749.47</u>
Explanation:
Perptuities = ammount/ (rate - growth)
175,000/(0.097-0.038) = $2,966,101.695
This value is two years from the present day.
Notice:<em> "it will be received two years from today"</em>
<em>So we need to adjusted to bring it to present</em>
<em></em>
<u>PV = 2,464,749.47</u>
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Answer:
Option (a) is correct.
Explanation:
Contribution margin per marketing plan = Sales - Variable cost
= $3,000 - $2,000
= $1,000
A.
(1)
Break even in marketing plan = 400
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 400 × 3,000
= 1,200,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 1,200,000
= 300,000
= 20%
B.
(1) Contribution margin per marketing plan = Sales - Variable cost
= $4,000 - $2,000
= $2,000
Break even in marketing plan = 200
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 200 × 4,000
= 800,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 800,000
= 700,000
= 47%
Therefore, option (a) would achieve the margin of safety ratio more than 45%.