All categories

3 years ago

The following information exists for ABC Company:

Business

1 answer:

Vladimir [108]3 years ago

4 0

Answer:

Difference= $1,000 increase

Explanation:

Giving the following information:

Selling price per unit: $30

Variable expenses per unit: $21

New selling price= 30 - 2= $28

New units sales= 13,000

<u>First, we need to calculate the current contribution margin:</u>

Total contribution margin= units sold*unitary contribution margin

Total contribution margin= 10,000*(30 - 21)

Total contribution margin= $90,000

<u>Now, the new contribution margin:</u>

Total contribution margin= 13,000*(28 - 21)

Total contribution margin= $91,000

You might be interested in

One advantage of proprietary software versus off-the-shelf software is that _____.

Serjik [45]

Proprietary software is a special software designed for a specific application and owned by the organization, firm or individual that uses it. Proprietary software can give an organization leverage over competitors, by solving problems in a unique manner, however, off-the-shelf software is mass produced software used by several other organizations, thereby giving other organizations simple and identical problem-solving technique.

6 0

2 years ago

Read 2 more answers

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p

ycow [4]

Answer:

6.52%

Explanation:

For computing the nominal yield to call, first we have to find out the present value by applying the present value formula which is shown in the attachment below:

Future value = $1,000

Rate of interest = 6.50% ÷ 2 = 3.25%

NPER = 15 years × 2 = 30 years

PMT = $1,000 × 8.25% ÷ 2 = $41.25

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $1,166.09

Now to determine the yield to call we use the RATE formula that is shown in the attachment below:

Present value = $1,166.09

Future value or Face value = $1,120

PMT = $1,000 × 8.25% ÷ 2 = $41.25

NPER = 6 years × 2 = 12 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the bond nominal yield to call is

= 3.26% × 2 years

= 6.52%

8 0

3 years ago

A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why do these investments by governments with

PolarNik [594]

Answer:

Large firm can gain control of natural resources.

Explanation:

Investments by governements with surplus cash flows do worry trade expert as believe as investing in large firm by goverment will take away control of natural resouces by government and corporate will have more control on natural resources, sensitive technologies of nation and management control.

Generally, sovereign wealth funds (SWFs) is governement funded investment to improve economy and develop nation and it´s citizen, however, a fast-growing form of foreign direct investment is sovereign wealth funds will have adverse affect on country´s citizen and resources nation have.

5 0

3 years ago

E14.3 (LO 1) (Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2020, Simon Compan

Savatey [412]

Answer:

1) January 1, 2020

Dr Cash 200,000

Cr bonds payable 200,000

July 1, first coupon payment

Dr Interest expense 4,500

Cr Cash 4,500

December 31, fourth coupon payment

Dr Interest expense 4,500

Cr Interest payable 4,500

2) June 1, 2020

Dr Cash 104,000

Cr Bonds payable 100,000

Cr Bond interest payable 4,000

July 1, first coupon payment

Dr Interest expense 2,00

Cr Cash 2,000

December 31, accrued interest expense

Dr Interest expense 6,000

Cr Interest payable 6,000

8 0

3 years ago

A channel of distribution: A. is any series of firms or individuals who participate in the flow of goods and services from produ

Illusion [34]

Answer:

A. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

Explanation:

6 0

2 years ago