Jeffries Corporation's Operating Income from the two products is <em>A. $35,000.</em>
The operating income is the difference between the revenue and operating costs (variable and fixed costs).
Data and Calculations:
Product A Product B Total
Revenue $18.00 $21.00
Variable cost 14.00 13.00
Contribution $4.00 $8.00
Fixed costs $143,000
Total sales units 35,600
Sales mix 3 1 4
Sales units 26,700 8,900 35,600
Total contribution$106,800 $71,200 $178,000
Total fixed costs 143,000
Operating income $35,000
Thus, the operating income is $35,000.
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Answer:
The relationship is that the price for these types of bonds is lower as the Yield is fixed and do not change over time.
The price of a Non-callable bond is cheaper than the price of the Callable bond as the Yield for a Non-callable bond is fixed. This suggest that the investor knows exactly what is the interest that is going to receive until the maturity of the bond.
Answer:
The optimal capital structure is 60% debt and 40% equity.
The correct answer is C
Explanation:
Optimal capital structure is a debt-equity mix that maximizes the stock price. Option C is a debt-equity mix that maximizes the stock price of the company.
<u>Answer:</u>
Federal bank increase initial reserves (by purchase of government bonds) by $8 million, to increase money supply by $40 million
<u>Explanation:</u>
Open market operations refer to buying 7 selling of government securities, to regulate money supply. To increase money supply, central bank buys the government bonds. As, purchase transaction from commercial bank or public imply they have more liquid money supplied.
Money multiplier reflects the multiple change in total money deposits, due to increase in initial deposits.
Final Deposits = (1 / RR) x Initial Deposits; where RR = Reserve requirement
Needed increase in money supply = 40 million, Reserve requirement = 20%
∴ 40 = ( 1 / 0.20 ) x Initial deposits
40 = 5 x Initial Deposits
Initial Deposits = 40 / 5
Initial deposits = 8
