Last year, Kurt invested $1,000 in ABC stock, $1,000 in long-term government bonds, and $1,000 in U.S. Treasury bills. Over the
course of the year, he earned returns of 10.3 percent, 8.8 percent, and 4.3 percent, respectively. What is the risk premium that Kurt received on his ABC stock investment?
1 answer:
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Answer:
$2.25
Explanation:
Please check the attached image for the full question used in answering this question
Breakeven sales is the quantity sold at which net income is equal to zero.
Breakeven sales = fixed cost / (price per unit - variable cost per unit )
$1,215,000 / ($80 - $35) = 27,000
If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =
27,000 = ($1,215,000 - $60,750) / ($80 - V)
27,000 = 1,154,250 / ($80 - V)
V = $37.25
Variable cost would increase by : $37.25 - $35 = 2.25
