Answer:hes wrong i just failed a mf test cause of it the right answer is bootstrapping on oddy
Explanation:
Answer:
break even point in units:
- a = 11,700
- b = 46,800
- c = 35,100
Explanation:
beer mugs contribution margin expected sales
a $5 25,000
b $4 100,000
c $3 50,000
fixed costs = $351,000
if the sales proportion remains the same, we can assume a bundle of products = 1a + 4b + 3c (1 for every 25,000 units) whose contribution margin = $5 + $16 + $9 = $30
break even point = fixed costs / bundle's contribution margin = $351,000 / $30 = 11,700 bundles
break even point in units:
a = 11,700
b = 11,700 x 4 = 46,800
c = 11,700 x 3 = 35,100
Answer:
For Dan, the demand is price inelastic
Explanation:
One of the factors tat affect the quantity demand for a product is the price of the product. According to the law of demand, at lower price more quantity of a product would be purchased than at a higer price, all other this being being equal.
Price elasticity of Demand (PED)
The extent to which a change in price will cause a change in the quantity demand for a product is called the price elasticity of demand. It measures the degree of responsiveness of quantity demand to a change in price.
It is calculated as
PED =% change in quantity demand / % change in price.
For Dan Newspaper , the price elasticity of demand
= 4%/8%
= 0.5
If the PED is greater than 1, the demand is price elastic
If the PED is less than 1 , demand is price inelastic
For Dan, the demand is price inelastic
Answer:
The calculations are shown below:
Explanation:
The calculations are shown below:
a. The expected rate of return is
Return = Risk free return + Beta × (Market return - risk free return)
= 5% + 1.9 × (11.20% - 5%)
= 5% + 11.78%
= 16.78%
b. Now the alpha is
Alpha = Actual rate of return - Expected rate of return
= 9.2% - 16.78%
= - 7.58%
c. No , the CAPM is not valid as the expected rate of return is more than the actual rate of return
Answer:
$8.50
Explanation:
Computation for the net incremental cost or savings of buying the component.
Using this formula
Incremental cost = Purchase price -Cost savings
Let plug in the formula
$37 - ($10.50+ $14.50 + 3.50)
Incremental cost=$37-$28.5
Incremental cost= $8.50
Therefore the net incremental cost or savings of buying the component is $8.50
