Answer:
Results are below.
Explanation:
Giving the following information:
January $2,700 300
February $3,000 350
March $3,600 500
April $4,500 690
May $3,200 500
June $5,500 700
<u>To calculate the variable and fixed costs, we need to use the following formulas:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,500 - 2,700) / (700 - 300)
Variable cost per unit= $7
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 5,500 - (7*700)
Fixed costs= $600
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,700 - (7*300)
Fixed costs= $600
Answer:
Explanation:
If a coupon paying bond is selling at par value, it means that the yield to maturity (YTM) is equal to the coupon rate.Therefore, these bonds have the following YTMs;
<u>Pretax;</u>
Corporate bond's YTM = 8%
Municipal bond's YTM = 5.5%
With regard to taxes, corporate bonds interests are not tax-exempt whereas municipal bond interests are.
<u>Therefore, </u>
<em>After tax YTM = ; Pretax rate(1-tax)</em>
Corporate bond = 0.08(1-0.28) = 0.0576 or 5.76%
Municipal bond ; will remain the same = 5.5%
The investor should select the corporate bond as it offers a higher after tax yield than the Municipal bond.
Buying a home could be a financial goal. The risk and costs associated with this goal depend on how its purchased and time. If the home is financed with a loan the cost and risks increase over the long term