Answer:
The indifference point is 1,410 units
Explanation:
Giving the following information:
Machine A:
Fixed costs= $160,000
Unitary variable cost= $80
Machine B:
Fixed costs= $270,000
Unitary variable cost= $2
<u>First, we need to structure the total cost formula for each machine:</u>
Machine A= 160,000 + 80x
Machine B= 270,000 + 2x
x= number of units
<u>Now, we equal both formulas and isolate x:</u>
160,000 + 80x = 270,000 + 2x
78x = 110,000
x= 110,000/78
x= 1,410 units
The indifference point is 1,410 units
Answer:
Real purchasing power increase= 2.16%
Explanation:
Giving the following information:
You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.
In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.
The inflation rate decreases the purchasing power of nominal income.
Real purchasing power increase= annual interest rate - inflation rate
Real purchasing power increase= 3.25 - 1.09= 2.16%
Answer:
The answer is $2,225,000
Explanation:
Cost of acquisition is $1,775,000
Meyer company's share of net income in Gannon corporation:
60% of $1,000,000
0.6 x $1,000,000
= $600,000
Meyer company's share from cash dividend in Gannon corporation
60% of $250,000
0.6 x $250,000
= $150,000
The balance in the equity investment account at December 31, 2021 should be:
$1,775,000 + $600,000 – $150,000
= $2,225,000
Answer:
$45.76
Explanation:
Next dividend = Dividend just paid * (1 + Dividend growth rate) = $3.71 * (1 + 0.036) = $3.84356
Using the formula for the dividend discount model, we can calculate he price per share of the company's stock as follows:
Stock price = Next dividend / (Required return - Dividend growth rate) = $3.84356 / (0.12 - 0.036) = $45.76
Therefore, the price per share of the company's stock is $45.76.
Answer:
Correct answer is C (just took the test)
Explanation:
