Average daily balance method a common method to calculate finance charges.
<u>Explanation:</u>
One of the most common ways through which the financial institutions for example the credit card companies calculate the financial charges that are to be paid by their customers and clients is the average daily balance method of the credit..
If this is the method used by your financial company also then you can reduce the financial charges that you have to pay by paying off the financial balance earlier than the billing cycle.
Answer:
$53.00
Explanation:
The computation of book value is shown below:-
But before that we need to determine the net asset which is
Net asset = Total asset - Total liabiliites
= ($350,000 + $650,000) - ($100,000 - $250,000)
= $1,000,000 - $350,000
= $650,000
Now
Value per share= (Net asset - preference share) ÷ number of common stocks
= ($650,000 - $120,000 ) ÷ 10,000 shares
= $530,000 ÷ 10,000
= $53 per share
Answer:
200 units
Explanation:
Perfect Competition are many firms selling similar products at same prices. So, constant prices imply that their marginal revenue = average revenue = price.
Monopoly is single seller of products. Their MR curve is below their AR curve. And, it is also twice steeper than AR (demand) curve, because it has double slope then that.
So, perfect competition is at equilibrium where MC = (MR = AR = P). However monopoly's optimum output is where MR = MC, & the optimal price is found by corresponding point at higher AR (demand) curve.
Given that MC curve is constant : Monopoly's output will be half perfect competition output, as per above explanation. So, if monopoly is producing 200 less than perfect competitive output. Being it half the perfect competition output, it could be producing output = 200 currently.
Answer:
Pretax income= 2,000
Explanation:
Giving the following information:
A company sells 800 units at $16 each, has variable costs of $12 per unit, fixed costs of $1,200.
<u>We need to determine the pretax income:</u>
Sales= 800*16= 12,800
Variable cost= 800*12= (9,600)
Contribution margin= 3,200
Fixed cost= (1,200)
Pretax income= 2,000