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iVinArrow [24]
3 years ago
5

Last year a business had fixed costs of £875,000 and revenue of 2.5 million. The business had total variable coats of 50,000 and

sold 100,000 units. Calculate the total costs of the business last year
Business
1 answer:
Tomtit [17]3 years ago
6 0

Answer:

Total cost of the business = £925,000

Explanation:

Solution:

Data given:

Fixed cost = £875000

Revenue generated = 2.5 million

Total variable cost = 50,000

Units Sold = 100,000

What is the total cost of the business = ?

Formula for total cost of the business is:

Total Cost = Total Fixed Cost + (Average variable cost per unit x units produced)

Here we have, Total variable cost not the average variable cost per unit.

So,

Average variable cost per unit = Total variable cost/ units produced

Average variable cost per unit = 50,000/100,000

Average variable cost per unit = 1/2 = £0.5 per unit.

Now,

Total cost of the business = Total Fixed Cost + (Average variable cost per unit x units produced)

Let's plug in the values.

Total cost of the business = 875,000 + (0.5 x 100,000)

Total cost of the business = £925,000

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Reptile [31]

Group of answer choices.

A. German tourists traveling abroad.

B. American tourists traveling in France.

C. Canadian firms selling in Germany.

D. Canadian investors with money investments in Germany.

Answer:

B. American tourists traveling in France.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country.

For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

In this context, a stronger euro is less favorable for American tourists traveling in France because the currency of the Americans, which is the U.S dollars would exchange at a far lesser rate to the euros.

However, a stronger euro would be more favorable for German tourists that are traveling abroad, Canadian firms that trade or sells its products in Germany, and Canadian investors who are having money investments in Germany.

Note: Euro is the official currency (legal tender or money) of Germany.

5 0
3 years ago
In February 2017 the risk-free rate was 4.97 percent, the market risk premium was 7 percent, and the beta for Twitter stock was
Gnesinka [82]

Answer:

14.77%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.97% + 1.40 × 7%

= 4.97% + 9.8%

= 14.77%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium and the same is shown in the answer

5 0
3 years ago
On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provi
const2013 [10]

Answer:

The requirement of the question is as below:

How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)  

What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)

Alan deposit on January 1 is $ 58,802.39  

Interest for four years is $21,197.61

Explanation:

The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:

PV=FV*(1+r)^-n

PV is the present value

FV is the worth of the investment in 4 years from now which is $80,000

r is the rate of return of 8%

n is the number of years of investment which is 4 years

PV=$80,000*(1+8%)^-4

PV=$80,0008(1+0.08)^-4

PV=$80,000*(1.08)^-4

PV =$ 58,802.39  

interest for four years=FV-PV

interest for four years=$80,000-$ 58,802.39  

                                    =$21,197.61

4 0
3 years ago
Which of these types of buildings would not be found on the plaza principal?
scoundrel [369]

The Answer is 

"<span>family homes "

</span>

<span>“Family homes” would not be found on the plaza principal. However the other two types i.e. municipal building as well as cathedrals will be found on plaza principal. The common events or activities found at the plaza principal are fiestas or festivals and meeting with friends.</span>

3 0
3 years ago
Which of the following statements is CORRECT?
Romashka [77]

Answer:

D. The threat of takeovers tends to reduce potential conflicts between stockholders and managers.

Explanation:

As with the threat of takeover, there comes the risk of losing control, power, monetary benefits, the stockholder's tend to agree with managers, and the manager's tend to agree with stockholders.

As both aims for no takeover of the company, both work in for each other, agreeing to the suggestions placed.

There is no dis-regard to any of the suggestions paid by any of the party. This threat actually creates moral harmony and unity among stakeholders and management.

Therefore, correct answer is:

D. The threat of takeovers tends to reduce potential conflicts between stockholders and managers.

8 0
3 years ago
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