Answer:
0.9717 per unit sold (approx)
Explanation:
Here, we are assuming 52 weeks in a year.
Contribution margin:
= (Sales revenue - variable cost) ÷ sales revenue
= [(3.52 × 10 + 3.52 × 0.18 × 540 × 52) - (3.52 × 0.26 × 551)] ÷ (3.52 × 10 + 3.52 × 0.18 × 540 × 52)
= [(35.2 + 17,791) - (504)] ÷ (35.2 + 17,791)
= [17,826.2 - 504] ÷ 17,826.2
= 17,322.2 ÷ 17,826.2
= $0.9717 per unit sold (approx)
Answer:
Market Price $985.01
Explanation:
We have to convert the US semiannually rate to annually.

Now this is the annual rate spected for a similar US Bonds
So we are going to calculate the present value using this rate.
Present value of an annuity of 78 for 20 years at 7.9521%


PV = 768.55
And we need to add the present value ofthe 1,000 euros at this rate


Present Value = 216.4602211
Adding those two values together
$985.01
The reasoning behind this is that an american investor will prefer at equal price an US bonds because it compounds interest twice a year over the German Bonds.
Answer:
The DDM tells us that share price = D*(1+G)/R-G
Dividend = 4.00
G= 0.05
R= 0.15
Price = 4*(1.05)/0.15-0.05
Price= $42
Explanation:
We use the dividend discount method to estimate the current price. We use the growth rate and required return to figure out the current price by using the DDM formula.
Solution:
The total cost for the company is the sum of its fixed cost and variable costs.
Corporate expenditures that do not depend on the amount of goods or services provided by the company are fixed costs.
Variable costs are expenses that change when changes occur in the sum of the good or service produced by a company.
C(x) = 90000 + 100x
C(110) = 90000 + 100 ( 110 )
C(110) = 90,000 + 11, 000 = 101,000
It costs $101,000 to produce 110 bicycles.
Answer:
An increase in the production leads to decline in the price. Producers are likely to supply more at the lower price or the existing price, considering the increase in production. If there is a 20 percent increase in the production, then it tends to increase the supply. An increase in supply will have a negative impact on price.
The effect of the increase in production on price is shown in the above figure. A twenty percent increase in the production causes an increase in the supply. Excessive supply causes a reduction in the price. Hence, when the supply increases from P1 to Q2, the price decreases to P2 from P1.