Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $90
Unitary variable cost= $36
Fixed costs= $135,000
First, we need to calculate the contribution margin per unit.
Contribution margin= selling price - unitary variable cost
Contribution margin= 90 - 36= $54
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 135,000 / 54
Break-even point in units= 2,500 units
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The answer is Gross National Income or GNI. It is the overall product and services earnings of people inside and outside the country, including businesses. Thus, the overseas earnings of Americans all over the world is also a part of GNI.
Answer:
11.7%
Explanation:
The common stock of a shaky building has a beta of 22%
The market risk premium is 9.56%
The US treasury bill is 3.3 %
Therefore the cost of equity can be calculated as follows
= 3.3/100 + (1+22/100)(9.56)
= 0.033 + (1+0.22)(9.56)
= 0.033 + 1.22×9.56
= 0.033 + 11.6632
= 11.7%
Answer:
d. The accept/reject decision depends on the firm's risk-adjustment policy. If Norris' policy is to increase the required return on a riskier-than-average project to 3% over rS, then it should reject the project.
Explanation:
The accept/reject decision depends on the firm's risk-adjustment policy. If Norris' policy is to increase the required return on a riskier-than-average project to 3% over rS, then it should reject the project.
