Answer:
The correct answer is letter "E": Derived demand.
Explanation:
Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.
Answer:
d. $234.00
Explanation:
The computation of the service fees every year is shown below:
= Service fee × weekly charge method × total number of weeks in a year
= $2.25 × 2 × 52 weeks
= $234
Since we have to compute for the year so we multiplied all three above components. Moreover, it is given in the question that if Faye use out of network than the bank service charge will be double, so we multiplied it by 2
Answer:
Celebruity has a unit contribution margin of $35 ($100-$62-$3), currently.
Celebrity will have a unit contribution margin of $42.25 =($110-$62-$2.75) whit the changes.
This is an increase of $10.25 in the unit contribution margin.
Sales volume remains to be the same at 150 units ($15000 / $100), so the effect on contribution margin is $1537.50 = (150 X $10.25).
The contribution margin increase equals the net income increase, $1537.5 because the costs remain the same
Answer:
Please kindly go through explanation for the answers.
Explanation:
A)The required return if Beta is 2 = 0.06+0.08*2 =0.22
B)Here Rf = 0.06
Expected return of the portfolio = 0.4*22% + 0.6*6% =12.4%
since beta of Rf = 0,the expected beta = 0.4*2 = 0.8
C)Beta is nothing but systematic risk of a security in comparing to the market. In this case stock z having beta of 1.5 which is less than beta of stockX i.e 2. and expected return is 15%.so stockz is offering lower return at lower risk. If the investor is a risk averse its a good buy.
D) let W be portion of stock X.
Then w*2 + (1-w)*0 = 1.5
W = 1.5/2 =0.75
to construct a portfolio which has a beta of 1.5 we have to invest 75% of our money in stock X and remaining in risk free asset
E) expected return = 0.22*.75 +0.25*0.06 = 16.5% + 1.5% = 18%
Answer:
$43.70
Explanation:
Data provided
Each Unit Require = 2.3 hours
Direct Labor Rate Per Hour = $19.00
The computation of budgeted direct labor cost per unit is shown below:-
Budgeted direct labor cost per unit = Each Unit Require × Direct Labor Rate Per Hour
= 2.3 hours × $19.00 rate per hour
= $43.70
Therefore for computing the budgeted direct labor cost per unit we simply multiply the each unit require with direct labor rate per hour