Question 1

Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income stateme

Serhud [2]

Answer:

$636,364

Explanation:

Calculation to determine what The break-even point for Gardner Corporation for the current year is

First step is to calculate the Variable costs

Variable costs = $250,000 + $150,000 + $75,000 + $200,000

Variable costs = $675,000

Second step is to calculate the Contribution margin ratio

Contribution margin ratio = (Sales - Variable costs) / Sales

Contribution margin ratio= ($1,500,000 - $675,000) / $1,500,000

Contribution margin ratio= 0.55*100

Contribution margin ratio = 55%

Now let calculate the Break-even point

Break-even point = Fixed costs / Contribution margin ratio

Break-even point= ($100,000 + $250,000) / 0.55

Break-even point = $636,364

Therefore The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:$636,364

6 0

2 years ago

A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon

gayaneshka [121]

Answer:

The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.

Explanation:

the duration of the perpetuity = (1+YTM)/YTM

= (1+0.04)/0.04

= 26 years

the weights of the bonds = w

5*w + 26*(1-w) = 15

5*w + 26 - 26*w = 15

21*w = 11

w = 0.52

Therefore, The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.

7 0

3 years ago

You own a portfolio consisting of the following stocks:

kykrilka [37]

Answer:

expected return is 15.8%

portfolio beta is 94.5%

Explanation:

a. EXPECTED RETURN: to calculate the the expected return of, we simply multiply each of the stock percentage by its expected return and then sum it up. thus we have

0.2×0.16 + 0.3×0.14 + 0.15×0.2 + 0.25×0.12 + 0.1×0.24= 0.158

Multiply the result by 100% yields 15.8%

B. PORTFOLIO BETA: to calculate the portfolio beta, we simply multiply the weighted average of the stock percentage by the portfolio beta. thus we have;

0.2×1 + 0.3×0.85 + 0.15×1.2 + 0.25×0.6 + 0.1×1.6= 0.945

multiply the result by 100% yields 94.5%

6 0

3 years ago

A corporate CEO wished to relay good news about the prospect of a new technology being created, but was reluctant to do so. Inst

borishaifa [10]

Answer:

Information signaling

Explanation:

Information signalling is defined as the various actions a firm takes that communicates it's financial outlook. For example if a firm releases a dividend policy it communicates the value of the firm's stock.

In this scenario the CEO announced increase in the firm's dividend. This will convey to investors that the company has a competitive advantage which will result in additional income, so dividends are being raised.

It is an indirect way of announcing good news about the prospect of a new technology being created.

7 0

3 years ago

14. in 2018, cities including seattle and san francisco passed laws banning the use of plastic disposable straws because they ar

mr Goodwill [35]

In the above situation, the potential costs that may be derived will be,

Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.
Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.
Alternatives to disposable straws do not need fossil fuels to be recycled.

Therefore, the options B, C and D hold true.

<h3>What is the significance of potential costs?</h3>

The potential costs can be referred to or considered as the costs that may have a contingency of being incurred by a producer upon the effects of some external factors.

Therefore, the options B, C and D holds true and states regarding the significance of potential costs.

Learn more about potential costs here:

brainly.com/question/10963256

#SPJ4

The question seems to be incomplete. It has been added below for better reference.

14. In 2018, cities including Seattle and San Francisco passed laws banning the use of plastic disposable straws because they are harmful to the environment (because plastic does not easily biodegrade) and to marine life (which ingest straws that end up in the ocean). Opponents point out that such bans may result in unintended monetary cost as well as external cost.

Which of the following describes potential costs that may arise as a result of these new laws? Select all that apply.

A. Alternatives to plastic straws cost at least 10 times more than the current price of plastic straws.

b. Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.

C. Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.

D. Alternatives to disposable straws do not need fossil fuels to be recycled.

4 0

1 year ago