Answer:
the selling price per unit is $95
Explanation:
The computation of the selling price per unit is shown below:
Selling price per unit is
= Total cost ÷ break even points
where,
Total cost is
= Variable cost + fixed cost
= $60,000 + $35,000
= $95,000
And, the break even point is 1,000 units
So, the selling price per unit is
= $95,000 ÷ 1,000 units
= $95
Therefore, the selling price per unit is $95
Answer:
Yes
Explanation:
The computation is shown below:
Particulars Sales As Is Process further Incremental Accounting
Sales $89,500 $605,000 $515,500
(1,375 units × $440)
Less:
Additional Process costs $398,750 $398,750
(1,375 units × $290)
Total $89,500 $206,250 $116,750
Based on the incremental income, Holmes should process it further.
Answer:
12%
Explanation:
The computation of the expected return on the market is shown below:
As we know that
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
11.1% = 5.55% + 0.86 × (Market rate of return - 5.55%)
So, the market rate of return is
= (11.1% - 5.55%) ÷ 0.86 + 5.55%
= 12%
Also , The Market rate of return - Risk-free rate of return) is also known as the market risk premium
If I’m not mistaking it’s around 46 or some like that.
