Answer: The Break-Even Point will reduce from $4,285.71 to $4,125
Explanation:
To get the Break-Even Point we can divide Fixed Assets by the Contribution margin.
The Contribution Margin is the Selling Price minus the Variable Cost.
For Scenario 1 the Break-Even Point will be,
= 15,000 / ( 6 - 2.50)
= $4,285.71
For Scenario 2 the Break-Even Point is,
= 16,500 / 6.5 -2.5
= $4,125
The Break-Even Point for Scenario 2 means that even though the higher Fixed Costs could have led to a higher Break-Even Point, the higher price contributed more than the fixed costs did and led to an ultimately lower Break-Even Point than the first Scenario.
Answer:
c. $150.
Explanation:
the extra amount of hours Maurice can work taking a flight will be of 5 hours
(8 hours taking a plane against 3 hours if driving)
As the income per hour is 30 dollar it can generate;
5 hours x $30 per hour = $150
Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150
Answer:
C
Explanation:
The GDP or gross domestic product measures the market value of all goods and services produced in country in a specific period of time. This year GDP should not include the log-splitter because Sally purchased it five years ago. We should include this year purchases: new parts, gasoline, oil. Also, we should include the market value of the 2 hours she spent repairing the log-splitter if she paid someone to do it or if someone paid her to do it, because this is a service. But the problem suggests that she repaired her own log-splitter, then we should not include it this year GDP.
Answer:
A. Buy a call
Explanation:
In the case when the investor purchase a call on the stock so the investor has the right to purchase for repurchase for a fixed price
Also the right way is to hedge a non-realized profit for a stock position i.e. short for purchasing a call
Therefore in the given situation, the correct option is A.
Answer;
The above statement is true;
<span>To protect consumers, the SEC requires brokers and dealers to reveal information about securities.
Explanation;
The objective of the SEC (securities and Exchange Commission) is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. they also protect consumers by requiring brokers and dealers to reveal information about securities. </span>
