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3 years ago

Coronado Industries produces 1000 units of a necessary component with the following costs:

Business

1 answer:

Reika [66]3 years ago

3 0

Answer:

$40,000

Explanation:

Current Cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead

= $20,000 + $9,000 + $3,000 + $7,000

= $39,000

Given,

Increase in profit contribution = $8,000 (If acquired from outside )

No fixed cost overhead Costs Can be reduced, so only profit margin will be reduced

New contribution margin = Increase in profit contribution (-) Fixed Cost

= $8,000 (-) $7,000

= $1,000

Maximum external price that Ruth Company would be willing to accept to acquire the 1,000 units externally

= Current Cost + New contribution margin

= $39,000 + $1,000

= $40,000

Maximum external price = $40,000

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Current Attempt in Progress Incorrect answer icon Your answer is incorrect. Carla Willis will invest $34,700 today. She needs $1

Nitella [24]

Answer:

12.18%

Explanation:

Present value = $34,700

Future Value = $173,500

Time (n) = 14 years

Interest Rate = i

Future Value = Present Value * (1+i)^n

$173,500 = $34,700 * (1 + i)^14

(1 + i)^14 = $173,500/$34,700

(1 + i)^14 = 5

1 + i = 5^(1/14)

1 + i = 1.1218284

i = 1.1218284 - 1

i = 0.1218284

i = 12.18%

So, the annual interest rate she must earn is 12.18%.

4 0

3 years ago

Investments and loans base their interest calculations on one of two possible methods: the interest and the interest methods. Bo

IrinaK [193]

FV = PV Times (1 + r)^n
FV = PV + (PV Times r Times n)
False
False
True
Laura should invest in investment P

Investment = L FV = $66,485.49 Make this investment? No

Investment = M FV = $59,400 Make this investment? No

Investment = P FV = $77,318.37 Make this investment? Yes

Explanation:

Compound interest: FV = PV Times (1 + r)^n
Simple interest: FV = PV + (PV Times r Times n)
The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. False
After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest. False
All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. True

Investment = L

Interest rate and method = 5% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.05)^8

FV = 45000 * (1.05)^8

FV = 45000 * 1.477455 = $66,485.49

Make this investment? Yes / No

Investment = M

Interest rate and method = 4% simple interest

Expected Future Value, FV = PV + (PV * r * n)

FV = 45000 + (45000 * 0.04 * 8)

FV = 45000 + 14400 = $59,400

Make this investment? Yes / No

Investment = P

Interest rate and method = 7% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.07)^8

FV = 45000 * (1.07)^8

FV = 45000 * 1.718186 = $77,318.37

Make this investment? Yes / No

Since she can only make one investment during the eight-year investment period, Laura should invest in investment P

8 0

3 years ago

West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bond

Nataliya [291]

Answer:

YTM is 4.94%

Explanation:

The yield to maturity is the return on the bond throughout the bond's tenure and can be computed using rate function in excel as shown below.

=rate(nper,pmt,-pv,fv)

nper is the number of coupons the bond has left to pay(23 years*2)

pmt is the semiannual coupon of the bond=$1000*5.3%*6/12=26.5

pv is the curren price=$1000*105%=$1050

fv is the face value of the bond

=rate(46,26.5,-1050,1000)=2.47%

2.47% is the semiannual yield

annual yield=2.47% *2=4.94%

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3 years ago

Vocational education is one path to a career

balu736 [363]

Answer:

It's true I think if I'm wrong do tell me.

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3 years ago

suppose that aggregate demand is falling for several months in a row. describe how the economy will adjust in the long run.

Salsk061 [2.6K]

If aggregate demand in the long run is falling for several months in a row, it will make aggregate market results in an increase in the price level but no change in real production. The level of real production resulting from the aggregate demand shock is full-employment real production.

Aggregate demand can be described as a measurement of the total amount of demand for all finished services and goods produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those services and goods at a specific point in time and price level.

The model of aggregate demand and long-run aggregate supply predicts that the economy will eventually move toward its potential output. To see how nominal wage and price stickiness can cause real GDP to be either above or below potential in the short run, consider the response of the economy to a change in aggregate demand.

Learn more about aggregate demand in the link brainly.com/question/14375684

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1 year ago