Answer:
$270,000
Explanation:
Data provided
Quantity of products = $280,000
Total fixed costs = $800,000
Unit sales price = $16
Variable cost = $12
The computation of units must be sold is shown below:-
Contribution per unit = $16 - $12
= $4 per unit
Units must be sold = (Quantity of products + Total fixed costs) ÷ Contribution per unit
= ($280,000 + $800,000) ÷ $4
= $1,080,000 ÷ $4
= $270,000
Answer:
32.03%
Explanation:
Data provided as per the question
Net operating income = $42,930
Average operating assets = $134,000
The computation of return on investment (ROI) is shown below:-
Return on investment =net operating income ÷ average operating assets
$42,930 ÷ $134,000
= 32.03%
Therefore for computing the return on investment we simply divide average operating assets by net operating income.
Answer:
a. $80,318.70
b. $97,568.57
Explanation:
Here is the full question :
You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 15 comma 555 at the end of this year, $ 31 comma 110 at the end of next year, and $ 46 comma 665 at the end of the year after that (three years from today). The interest rate is 6.7 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $ 15,555
Cash flow in year 2 = $31,110
Cash flow in year 3 = $ 46,665
I = 6.7%
Present value = $80,318.70
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$80,318.70(1.067)^3 = $97,568.57
Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
Answer:
amount invest in B is 2000
Explanation:
given data
invested in Fund A = 5000
return profit A = 3%
return profit B = 10%
both together returned profit = 5%
solution
we consider here amount invest in B = x
so profit from fund B is
profit from fund B = 10% × x = 0.1 x
and
profit from fund A = 5000 × 3% = 150
so total profit = 0.1x + 150
and total profit = 5%
so we can say
5% = 
solve it we get
x = 2000
so amount invest in B is 2000
