The answer that you are looking for is true
Answer:
Effect on income= $11,140 increase
Explanation:
Giving the following information:
Contribution margin $126
The marketing manager believes that a $6,500 increase in the monthly advertising budget would result in a 140 unit increase in monthly sales.
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= total contribution margin increase - fixed costs increase
Effect on income= 140*126 - 6,500
Effect on income= $11,140 increase
<span>In a database a collection of related records is referred to as a table or a file.
In short, the answer would be : file.
Hope this helps !
Photon</span>
Answer:
dealer A:
total interest charged = ($118.28 x 18 months) - $2,000 = $129.04
APR = [($129.04 / $2,000) / 1.5 periods] x 100% = 4.3%
dealer B:
total interest charged = ($70.31 x 36 months) - $2,000 = $531.16
APR = [($531.16 / $2,000) / 3 periods] x 100% = 8.85%
The APR charged by dealer A is much lower than the APR charged by dealer B. Even thought the monthly payments are much lower for dealer B, the total amount of interest charged is much higher.
Answer:
<u>Net Present Value: </u><em>362,855</em>
Explanation:
<u>First we need to calculate the WACC to know the required return of the project.</u>
Ke = 0.152 (0.137 cost of capital+ 0.015 subjective risk)
ER = 0.35 = E/(E+D)
Kd = 0.086
DR = 0.65 = D/(E+D)
t = 0.35
WACC 8.95350%
<u>Then we calcualte the net present value:</u>
<em>Present value of the cash flow</em>
C= 1,540,000
rate = 8.9535%
time 7 years
PV = 7,762,855
Present value of the cash flow - Investment = NPV
7,762,855 - 7,400,000 = 362,855
