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Ede4ka [16]
3 years ago
8

A firm expects to sell 25,900 units of its product at $7 per unit. Pretax income is predicted to be $60,900. If the variable cos

ts per unit are $3, total fixed costs must be:_____.
Business
1 answer:
maks197457 [2]3 years ago
4 0

Answer:

Fixed costs= $42,700

Explanation:

Giving the following information:

A firm expects to sell 25,900 units of its product at $7 per unit.

Pretax income is predicted to be $60,900.

Unitary variable cost= $3

<u>The pretax formula is:</u>

Pretax income= total sales - total variable cost - total fixed costs

<u>We have to isolate the fixed cost:</u>

Fixed costs= total sales - total variable cost - pretax income

Fixed costs= 25,900*(7-3) - 60,900

Fixed costs= $42,700

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The research is aimed to reach the academics audience because the terminology, the structure of the research report and the analisys of the findings should reach academic standards, being a starting point for developing practical strategies to bring together practical inconsistancies

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How long will it take for a $4000 investment to grow to $6000 at an annual rate of 15%, compounded monthly? Assume that no withd
Inessa05 [86]

Answer:

It will take 2.72 years and 32.64 months.

Explanation:

Future value is the sum of principal amount and compounded interest amount invested on a specific rate for a specific period of time.

Use following formula to calculate the time period.

FV = PV x ( 1+ r )^n

FV = Future value = $6,000

PV = Present Value =  $4,000

r = rate of interest = 15% yearly = 15% / 12 = 1.25%

n = time period = ?

$6,000 = $4,000 x ( 1 + 1.25% )^n

$6,000 = $4,000 x ( 1.0125 )^n

$6,000 / $4,000 = ( 1.0125 )^n

1.5 = ( 1.0125 )^n

Log 1.5 = n log 1.0125

n = Log 1.5 / log 1.0125

n = 32.64 months

n = 2.72 years

6 0
3 years ago
A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The
Schach [20]

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The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher

Explanation:

Amount of interest component in a loan instalment will be higher as compared with principal amount in the initial period of repayment . As period lapses , interest amount reduces progressively and principal amount increases . When the tenure of loan is increased , proportion  of interest increases in an instalment .

3 0
3 years ago
What is the equilibrium quantity for phones?
Nana76 [90]

Answer:

Readjusting once again to marketplace conditions, the next year the company produces 65,000 phones, with a retail price of $45. At the end of the year, the company’s sold almost its total supply of phones. It indicates that the equilibrium quantity of phones is 65,000, at a retail price of $45 (which would be the equilibrium price). More Resources

Explanation:

According to our curve, the equilibrium point initially is indicated by point E on the graph, but since the supply of cellphones has increased, quantity supplied increases to the graph indicated by S 1 S 1, this causes an excess of the product in the market resulting in a stiff competition which often sees the sellers reduce their prices. hope that helps.

3 0
2 years ago
The firm's tax rate is 34 percent. The firm's pre-tax cost of debt is 8 percent; the firm's debt-to-equity ratio is 3; the risk-
MAVERICK [17]

Answer:

WACC = 0.08085  or  8.085% rounded off to 8.09%

Option c is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

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  • r represents the cost of each component

We first need to calculate the weight of each stock. We know the basic accounting equation is,

Assets = Debt + Equity

We know the debt to equity ratio is 3. Then total assets will be,

Assets = 3 + 1

Assets = 4

Using the CAPM equation, we can calculate the cost of equity.

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r = 0.165  or  16.5%

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WACC = 0.08085  or  8.085% rounded off to 8.09%

4 0
3 years ago
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