Answer:
$647.96
Explanation:
Sue the following formula to calculate the price of the bond at the time of sale
Price of Bond = Face value of the bond / ( 1 + Market interest rate )^numbers of years
Where
Face value of bond = $1,000
Market interest rate = 7.5%
Numbers of years = 6 years
placing values in the formula
Price of Bond = $1,000 / ( 1 + 7.5% )^6
Price of Bond = $647.96
Answer:
(B) 34400 units
Explanation:
The formula to compute the break even point is shown below:
= (Fixed costs) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $50 - ($50 × 50%)
= $50 - $25
= $25
And, the fixed cost = $665,000 + $195,000 = $860,000
So, the break even point would be
= ($860,000) ÷ ($25)
= 34,400 units
Answer:
The correct answer is option B.
Explanation:
The market for oranges is perfectly competitive. An increase in the demand for oranges will cause the demand curve to move to the right. This rightward shift in the demand curve will cause the equilibrium price and quantity to increase.
At higher price, the producers will supply more oranges, because they will earn more profits. The supply of product is positively related to its price. So at higher price of oranges, more quantity will be supplied.
This statement is true
im 100% correct that its true
Answer:
The total Operating income will decrease by $5,000
Explanation:
Note that some word are missing and are inserted as written below:
"<em>Benace Parts and Supply makes a variety of car parts. The company produces 6,000 A90 parts each year. Each A90 sells for $7 and has a contribution margin of $2. Currently, $16,000 of fixed manufacturing overhead is allocated to the A90 product line. If Benace Parts and Supply discontinues the A90 product line, $7,000 of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A90 product line were to be discontinued?
</em>"
Solution:
Loss of Contribution margin if the A90 product line discontinued = Units * Contribution margin per unit
= 6,000 units * $2
= $12,000
Saving of avoidable fixed Overhead = $7,000
Decrease in Total Operating Income = Loss of Contribution margin - Saving of avoidable fixed Overhead
= $12,000 - $7.000
= $5,000 (Decrease)
Hence, the total Operating income will decrease by $5,000