Money markets trade securities that: ______________

In 2016, Raleigh sold 1,000 units at $500 each, and earned net income of $40,000. Variable expenses were $300 per unit, and fixe

labwork [276]

Answer:

1,118 units.

Explanation:

The computation of number of units to be sold is shown below:-

For the Year 2016

Number of Units Sold = 1,000 units

Unit selling price = $500 per unit

Total Sales = $500 × 1,000 = $500,000

Variable Costs = $300 × 1,000

= $300,000

Contribution = $500,000 - $300,000

= $200,000

Fixed Costs = $160,000

Net Income = $200,000 - $160,000

= $40,000

For the Year 2017

Unit Selling Price = $500 per unit

Unit Variable Cost = $300 × 1.10

= $330 per unit

Contribution per unit = $500 - $330 = $170 per unit

Fixed Cost = $160,000 - $10,000 = $150,000

Now, to maintain the same income of $ 40,000 the Company have a total contribution

$150,000 + $40,000

= $190,000

Number of units to be sold = Total contribution ÷ Contribution per unit

= $190,000 ÷ $170

= 1,117.64

or

1,118 units.

4 0

2 years ago

The first step in pursuing your financial goals is_______. PLEASE HELP

Delvig [45]

Your first step is to create a saving plans and to set your smart goals

5 0

2 years ago

Read 2 more answers

A company with high ebit is considering pursuing multiple projects next year. which trade-off is involved, and what is the ideal

strojnjashka [21]

A company with high EBIT is considering pursuing multiple projects next year. The trade-off involved will be maximizing the number of projects against a higher credit rating, with an A rating being ideal. Thus the correct answer is D.

<h3>What is a trade-off?</h3>

The trade-off is referred as a situation when one object gets compromised to gain over another object. This situation comes when decision-making between two goods takes place and one will get selected over the other.

Increasing the number of projects is compromised for a superior credit rating. A strong credit rating won't be enough since more projects will require the business to heavily rely on financing. The A credit rating will be considered.

Therefore, option D is appropriate.

Learn more about trade-off, here:

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The complete question is-

A company with high EBIT is considering pursuing multiple projects next year. Which trade-off is involved, and what is the ideal credit rating for the company between AAA, AA, A, and BBB?

Select an answer:

The trade-off is only being able to pursue a few of the projects against a lower credit rating, with an AA rating being ideal.

The trade-off is pursuing more new projects against a lower WACC, with a AAA rating being ideal.

The trade-off is the risk of a credit downgrade against having few new projects, with a BBB rating as ideal.

The trade-off is maximizing the number of projects against a higher credit rating, with an A rating being ideal.

5 0

1 year ago

1. Assume there are only two goods in the economy, french fries and onion rings. In 2013, 1,000,000 servings of french fries wer

xxMikexx [17]

Answer:

A. Nominal GDP in 2013 = $880,000

Nominal GDP in 2014 = $878,400

Real GDP in 2014 = $864,000

B. An assessment of growth using nominal GDP would overstate growth due to the effect of inflation on 2014 prices. The real GDP was lower than the nominal GDP

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation

Nominal GDP in 2013 = ( 1,000,000 x $0.40 ) + ( 800,000 x $0.60) = $880,000

Nominal GDP in 2014 = ( $0.50 x 900,000 ) + ($0.51 x 840,000) = $878,400

Real GDP in 2014 = ( $0.40 x 900,000 ) + ($0.60 x 840,000) = $864,000

An assessment of growth using nominal GDP would overstate growth due to the effect of inflation on 2014 prices. The real GDP was lower than the nominal GDP

4 0

3 years ago

The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how

lesantik [10]

Answer:

b) false

Explanation:

In the case of theory that developed by MM in this the investor have no need for concering with respect to the dividend policy of the company as in this the sell option is there with regard to the equity portfolio when they need the cash

So according to the given situation, the given statement is false

hence the option b is correct

7 0

2 years ago

Money markets trade securities that: _______________