Answer:
The target selling price =$45
Explanation:
The target selling price is the sum of the total unit cost plus 25% of the the unit cost
The target selling price = Total per unit cost + (25% × total unit cost)
The total unit cost is the sum of all the costs involved making the product available to the consumer.
The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.
The target selling price would be determined using te steps below:
Step 1: Calculate the unit cost
Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36
Total unit cost = $36
Step 2: Calculate the target selling price
Target selling price = Unit cost + (25%× unit cost)
The target selling price = 36 + (25% × 36) = $45
The target selling price =$45
Answer:
$9.18
Explanation:
Return on Investment is the actual profit / gain received on investment. In case of Investment in the stock the dividend and price appreciation is included in the return.
We will calculate the return on the investment in accounts.
Return = Dividend Received + ( Market Price of Stock - Initial price )
Return = Dividend Received + ( Market Price at the end of the year - Price at the beginning of the year )
Return = $0.85 + ( $76.45 - $68.12 )
Return = $0.85 + $8.33
Return = $9.18
The answer is savings account A.
Since savings account A compounds the interest quarterly it adds interest to the account every quarter. This makes it a more profitable account than one that compounds the interest semiannually. The reason is that the bank is adding interest more frequently, so you are earning interest on the interest that the bank has already paid you.
