Answer:
The answer is: setting product prices high enough for the company to be profitable.
Explanation:
Production cost refers to the <u>cost that a company has incurred from the moment it manufactured its product, towards the delivery until it provided the product or service to the customers. </u>Part of this cost are the taxes that are imposed on the product or service.
So, in order to control costs, the production cost report is being used by managers in order to set product prices high enough for the company to be profitable.
or example, if the production cost is higher than the sale price of a product, then the company could either l<u>ower their production cost or set their product prices high enough in order to be profitable.</u> If they cannot do both, then they could stop producing the product or service.
Answer:
1,301 units.
Explanation:
With regards to the above, we know that break even level is
= ( FC + Depreciation ) / Contribution margin
FC = $4,200
Depreciation = $225
Contribution margin = P - V, where P = $4.60 , V = $1.20
Therefore,
Break even level = ($4,200 + $225) / $4.60 - $1.20
Break even level = $4,425 / $3.40
Break even level = 1,301 units
Hence, the amount of units N corp needs in order to break even is 1,301 units
Answer:
Expected return - Portfolio = 0.1155 or 11.55%
Explanation:
The expected return on the portfolio is the weighted average of the expected returns of the individual stocks that form up the portfolio. Thus, the formula for the expected return of the portfolio is,
Expected return - Portfolio = rA * wA + rB * wB + ... + rN * wN
Where,
- rA, rB, ... represents the expected return on stock A, return on stock B and so on
- w represents the weight of each stock in the portfolio
Expected return - Portfolio = 0.09 * 0.35 + 0.15 * 0.2 + 0.12 * 0.45
Expected return - Portfolio = 0.1155 or 11.55%
Answer:
$19,478
Explanation:
<u>Computation of tax liability</u>
i. Total income excluding LTC gain = 108,000 - 5,800 = 102,200
ii. Tax on 102,200 as per single tax schedule = 14605.5+((102200-85525)*24%) = 18607.50
iii. Tax on LTC gain at 15% = 5800 * 15% = 870
So, Gross Tax liability = $18607.50 + $870 = $19477.50 = $19,478
Note: As per Long term capital gain schedule
Answer:
(C) as the network size grows, the services become cheaper.
Explanation:
Network externalities relate to the economies of scale, it is basically the relation of demand with the quantum.
As when the production increases then due to increase in number of units, the cost of producing is less. Accordingly if the supply is more then price is less for the consumers. This clearly relates to services also.
Thus, when there is a growth in network size then the cost of such service or goods tend to decline as on per service basis.
