Answer:
It is more profitable to add the vitamin and sell the product for $5. Income will increase by $260
Explanation:
Giving the following information:
The number of units= 1,000 packages
Actual:
Selling price= $4.00 per pack.
Variable cost is $1.50 per unit
Fixed costs are $1,700 per month.
New option:
Selling price= $5
Variable cost= $1.9
Fixed costs= $2,040
We need to calculate the net income of both options, and choose the more profitable one:
Actual:
Net income= 1,000*(4-1.5) - 1,700= $800
New:
Net income= 1,000*(5 - 1.9)- 2,040= $1,060
It is more profitable to add the vitamin and sell the product for $5.
Because shares of stock can be bought in tiny increments, even novice investors can take part in corporate fund-raising efforts.
<h3>What do you mean by corporations?</h3>
A corporation is a business entity whose shareholders elect a board of directors to run its affairs. The corporation, not the shareholders, is in charge of the company's activities and financial situation. a large company run by a collection of companies as a single unit: a multinational corporation. UK Broadcasting Corporation
<h3>What is the importance of corporations?</h3>
In order to create value over the long term, a corporation must conduct legal, moral, profitable, and sustainable business practises. This necessitates taking into account the stakeholders who are essential to its success (shareholders, employees, customers, suppliers, creditors, and communities), as determined. A corporation protects its owners' personal assets from liability more than any other type of entity. For instance, even if a company's assets are insufficient to cover its debts, its investors will not be held personally liable in the event of a lawsuit.
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Answer:
E.In equilibrium, the expected return on Stock A will be greater than that on B.
Explanation:Beta is a measure used in the stock marketing to describe how volatile a stock is compared the the overall market. A stock with a Beta greater than one signifies that a share is more volatile than the overall market, while a Beta less than one signifies that the market is more volatile than the stock.
IN EQUILIBRIUM, STOCK A WITH A BETA GREATER THAN ONE WILL BE MORE PROFITABLE AND GENERATE MORE INCOME THAN STOCK B WHICH HAS A LOWER BETA THAT IS LESS THAN ONE.
Answer:
c. 1.50%
Explanation:
The Hardwig, Inc is considering to pursue a relaxed or restricted current asset investment. We need to calculate the ROE for both the situations. The Net income in the both situation will be;
EBIT - Interest expense - Tax expense = Net Income
Restricted situation = $150,000 - 72,000 - 31,200 = $46,800
Relaxed situation = $150,000 - 81,818 - 27,273 = $40,909
ROE = Net income / equity
Relaxed situation = $40,909 / $818,180 = 5.00%
Restricted situation = $46,800 / $720,000 = 6.50%
The difference between both ROE = 1.50%
