Answer:
$124,200
Explanation:
Contribution margin is net of sales value and variable cost. This value is available to cover the fixed cost of the business and profit after adjusting fixed cost.
As per given data
Price = $98
Numbers of units sold = 1,800
Total Sales = $98 x 1,800 = $176,400
Variable cost = $23 x 1,800 units = $41,400
Variable marketing cost = $6 x 1,800 = $10,800
Total Variable cost = $41,400 + $10,800 = $52,200
Contribution Margin = Total Sales - Total Variable cost
Contribution Margin = $176,400 - $52,200
Contribution Margin = $124,200
He should price them by taking 90 percent and dividing by .32
D.) Marginal cost is equal to average total cost. (Because when the average total cost is at its minimum, marginal cost is also at its minimum.)
Answer:
A
Explanation:
To answer the question, we look at an extreme scenario of 0% interest rate and see the minimum repayment Jade will make on the loan taken
Therefore,
Interest Rate = 0%
This means that the loan to be paid will be calculated as follows
Monthly payments x 12 Months x 14 Years
= $195 x 12 months x 14 years = $32, 760
The meaning of this outcome is that the lower the interest rate to be paid, the higher the size of the loan, because at 2.9% the loan= $26,898.98 and at 0% rate the loan= $32, 760.
The conclusion therefore is a 2.7% interest rate which is lower than 2.9% but not as low as the extreme 0% will cause the loan amount to be higher than $26,898.98. This affirms option A.
Options B and C are wrong because 2.5% and 2.3% are lower than 2.9%, therefore, the loan amount will be higher. Option D is also wrong because a 3.1% interest rate is higher than 2.9%, therefore, the amount should be lower not higher than $26,898.98
The most important factor is considering the tuition. A lot of students experience problems regarding expensive student loans and gradually being in debt after school. To prevent this, keep you pool within your financial capability. Then, the basic information comes next, like the courses offered and the quality of education and training.
