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Evgen [1.6K]
3 years ago
10

Locus Company has total fixed costs of $121,000. Its product sells for $67 per unit and variable costs amount to $57 per unit. N

ext year Locus Company wishes to earn a pretax income that equals 15% of fixed costs. How many units must be sold to achieve this target income level
Business
1 answer:
Trava [24]3 years ago
8 0

Answer:

13,915 units

Explanation:

With regards to the above, we need to determine first the target or desired profit.

Desired profit = $121,000 × 15% = $18,150

The next step is to calculate the contribution margin, which is the difference between selling price and variable cost.

Contribution margin = Sales - Variable cost

Contribution margin = $67 - $57

Contribution margin = $10 per unit

Target sales is therefore;

Target sales = (Fixed cost + Target profit) / Contribution margin

Target sales = ($121,000 + $18,150) / $10

Target sales = $139,150 / $10

Target sales = 13,915 units

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Wilson’s is reviewing a project with an internal rate of return of 13.09 percent and a beta of 1.42. The market risk premium is
maria [59]

Answer:

Accepted and rejected

Explanation:

Since the internal rate of return is 13.09% and the WACC is 12.68%

As we can see that the internal rate of return is higher than the WACC as WACC is considered as the discount rate

So the project should be accepted

And, if CAPM is used

So, the expected rate of return is

If CAPM is used

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= 2.9% + 1.42 × 8.1%

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= 14.40%

And, The Internal rate of return  = 13.09%

Since the internal rate of return is less than the expected rate of return therefore the project should be rejected

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2 years ago
Question 13 of 20
KATRIN_1 [288]

Answer:

he answer is : He likely did not cite his research, and committed plagiarism.  Todd's manager has asked him to write a report on ways to increase safety in the warehouse. Todd used the Internet to research statistics and recommendations for improving safety in the workplace. He feels like he pulled together a really strong document and that his manager will be pleased. However, when he is called into his manager's office, his manager is concerned and tells him that he has been unethical in his work.  He likely did not cite his research, and committed plagiarism.   It is the practice of taking someone else's work or ideas and passing them off as one's own.

Explanation:

5 0
3 years ago
The shortest-route problem is a special case of the transshipment problem.
Vsevolod [243]

The shortest-route problem is a special case of the transshipment problem while transportation problems prevent shipments from entering and exiting some nodes, the transshipment problem does.

<h3>What are transshipment?</h3>

Transshipment is the loading and unloading of goods and stuff from one transport vehicle to another vehicle.

Transshipment happens because of no direct connection between the ports, due to this the goods are transported to different vehicles.

Thus, while transportation problems prevent shipments from entering and exiting some nodes, the transshipment problem does.

Learn more about transshipment

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3 0
1 year ago
A chocolatier produces truffles and sells each 1 pound box of truffles for $20. However, the chocolatier knows that some consume
Alexus [3.1K]

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Here the price discrimination should be in respect with the demography i.e. allow the chocolatier to sell truffles to the consumer based on their age groups.

<u><em>The correct option is (3).</em></u>

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3 years ago
Suppose Will gives his wallet containing $100 to Alex to hold while he works out. During Will’s workout, Alex uses the $100 to p
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Answer:please refer to the explanation section

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The multiplier in this case is 3,

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