Answer:
Donuts= 28,571
Explanation:
<u>First, we need to determine the sale proportion of each product:</u>
Other items= 2/5= 0.4
Coffe= 2/5= 0.4
Donut= 1/5= 0.2
<u>Now, we can calculate the break-even point in units for the company as a whole:</u>
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 100,000 / (0.5*0.2 + 0.5*0.4 + 1*0.4)
Break-even point (units)= 100,000 / 0.7
Break-even point (units)= 142,857 units
<u>Now, the number of donuts:</u>
<u />
Donuts= 0.2*142,857
Donuts= 28,571
Answer:
D. Fall; Surplus
Explanation:
Loanable Funds
This is simply the sum total of all the money individuals in an economy or nation have decided to save and lend to borrowers as an investment rather than use for individual consumption. The market describes how money is borrowed. It illustrates the interactions between savers and borrowers in a country.
Interest rate here is determined by the demand and Supply of loanable funds. When the Savers and More than the borrowers, that is, supply is larger than demand, interest Rate generally FALLS (drops). This is as a result of the SURPLUS loanable funds available.
A good example is in the question, where the borrowers want 100million and the Savers are saving 125 million.
The Savers amount are more than the borrowers amount by 25 million, hence a fall in interest rate due to that Surplus.
Answer:
$18,100 unfavorable
Explanation:
The computation of the total variable overhead variance is shown below:
Total variable overhead variance = Standard variable overhead cost - Actual variable overhead cost
where,
Standard variable overhead cost is
= 2 hours × 400 units × $8 per hour
= $6,400
And, the actual variable overhead cost is $24,500
So, the total variable overhead variance is
= $6,400 - $24,500
= $18,100 unfavorable
Since the actual variable overhead cost exceeds then the standard variable overhead cost so it reflects the unfavorable variance
Answer:
Option (B) If the market rate of interest is 10%, the bonds will issue at a discount
Explanation:
Interest rate risk is defined as the risk changing which, interest rates will affect bond prices. When current interest rates are greater than a bond's coupon rate, the bond will be sold below its face value at a discount. When interest rates are less than the coupon rate, the bond can be sold at a premium--higher than the face value.
