Answer:
a) increased by 368 units
Explanation:
The calculation of the next break even point should be
Existing break-even point for Flying Cloud Co. is
= Fixed Cost ÷ Contribution Margin Per Unit
= Fixed Cost ÷ Sales Price Per Unit - Variable Cost per Unit
= $980,000 ÷ ( $350 - $100)
= 3,920 Units
Now
Revised Variable cost = $100 × 110%
= $110
And,
Revised Fixed cost = $980,000 × 105%
= $1,029,000
So,
Revised break-even point for Flying Cloud Co. is
= Fixed Cost ÷ ( Contribution Margin Per Unit
= Fixed Cost ÷ ( Sales Price Per Unit - Variable Cost per Unit
= $1,029,000 ÷ ( ( $350 -$110)
= 4,287.5
= 4,288 units
So,
Increase = 4,288 Units - 3920 Units
= 368 Units Increase
Yes because he it goes up ever 18 mouths so it would
Answer:
b. YX
Explanation:
In the case of A,
To generate 50 X ,
give up = 50 Y
Therefore opportunity cost of 1 X = 1Y
In the case of B
To generate 40 X,
give up 30 Y
Therefore opportunity cost of 1 X = 3 ÷4 Y
Therefore B has a Comparative advantage in X
And, A has Comparative Advantage in Y
Answer:
b. slightly higher than 12%.
Explanation:
As it received 198,000 dollars from the 200,000 face value there is a discount of 2,000
therefore the actual market rate in the bonds will be above par as it will pay 12% like if it receive 200,000 but only get 198,000 in reality thus the cost of ddebt based on the actual amount received is above 12%
