Answer: Financial institutions
Explanation: Financial institutions, sometimes referred to as banking institutions works as a intermediary in financial markets. These institutions offers deposit facilities to general public in exchange of interest on such deposits. Then these institutions lend the deposited amounts to those in need for investments and funds and charge interest to them.
Thus, we can conclude that option A is correct.
Answer:
65%
Explanation:
Given that
Sales = $979,000
Variable manufacturing expense = $232,000
Variable selling and administrative expense = $110,650
The computation of contribution margin ratio is shown below:-
Contribution margin ratio = (Sales - Variable manufacturing expense - Variable selling and administrative expense) × 100 ÷ Sales
= ($979,000 - $232,000 - $110,650) × 100 ÷ $979,000
= ($979,000 - $342,650) × 100 ÷ $979,000
= $636,350 × 100 ÷ $979,000
= 65%
Answer:
Explanation:
To start with, we need to get the value for total fixed cost and total variable cost
Total fixed costs = Depreciation + Advertising + Insurance
= $1,500 + $350 + $2,770
= $4,620
Total variable costs per unit = Weed and feed materials + Direct labor + Lawn Fuel
= $17 + $9 + $2
= $28 per lawn
We also need to compute the contribution margin ratio
= Sales per unit - Variable cost per unit / Sales per unit
= (70 - 28) / 70
= 0.6
= 60%
Therefore;
1. Break even sales
Answer and Explanation:
The composite score for each location is as follows;
The Composite score for Location A is
= 85 × 0.15 + 70 × 0.2 + 87 × 0.18 + 0.27 × 95 + 86 × 0.1 + 88 × 0.1
= 85.7
= 86
The Composite score for Location B is
= 85 × 0.15 + 91 × 0.2 + 97 × 0.18 + 90 × 0.27 + 90 × 0.1 + 0.1 ×92
= 90.91
= 91
The Composite score for Location C is
= 82 × 0.15 + 91 × 0.2 + 90 × 0.18 + 92 × 0.27 + 97 × 0.1 + 0.1 ×84
= 89.64
= 90
Answer: Stock B
Explanation:
Use CAPM to calculate the required returns of both stocks.
Stock A
Required return = Risk free rate + beta * ( Market return - risk free rate)
= 5% + 1.20 * (9% - 5%)
= 9.8%
Stock B
Required return = 5% + 1.8 * (9% - 5%)
= 12.2%
Both of them have Expected returns that are higher than their Required returns so both of them are good buys.
The better buy would be the one that has more expected value excess over required return.
Stock A excess = 10% - 9.8% = 0.2%
Stock B excess = 14% - 12.2% = 1.8%
<em>Stock B offers a higher excess and is the better buy. </em>
