The profit that is gained by the company for selling a unit is equal to the difference between the revenue and total cost. In this item the revenue is given to be $45 and the profit is $10. To answer this item, we let x be the cost such that,
45 - c = 10
Simplifying,
c = 45 - 10
Further simplification will lead us to,
c = 35
Answer: $35.
Answer: percentage change in quantity demanded
Explanation: the basic formula for the price elasticity
Answer:
Instructions are below.
Explanation:
Giving the following information:
Sales in units:
January= 3,000
February= 2,000
March= 2,500
April= 2,700
May= 2,900
The required ending inventory is 20% of the next month's sales, and the beginning inventory on January 1 was 600 units.
The production budget for each month is calculated using the following formula:
Production= sales + desired ending inventory - beginning inventory
Production budget:
January:
Sales= 3,000
Ending inventory= (2,000*0.2)= 400
Beginning inventory= (600)
Total= 2,800
February:
Sales= 2,000
Ending inventory= (2,500*0.2)= 500
Beginning inventory= (400)
Total= 2,100
March:
Sales= 2,500
Ending inventory= (2,700*0.2)= 540
Beginning inventory= (500)
Total= 2,540
April:
Sales= 2,700
Ending inventory= (2,900*0.2)= 580
Beginning inventory= (540)
Total= 2,740
Answer:
3.00%
Explanation:
Required return of a stock = Risk free rate of return + (average required return - Risk free rate of return) (Beta of the stock)
Required return of Stock R = 0.03 + [ (0.09 - 0.03) * 1)] = 0.09
Required return of Stock S = 0.03 + [ (0.09 - 0.03) * 0.45)] = 0.06
Difference = 0.09 - 0.06 = 0.03, or 3%
Therefore, the required return on the riskier stock will exceed the required return on the less risky stock by 3.00%.
