(10)2 x (6)3 = 38
It will cost $38 for 2 adult's and 3 children's tickets.
Answer:
1875 arrangements
Step-by-step explanation:
Break-Even is the point when costs are equal to profit.
The cost is 15,000
We need to cover this up with the profit we get from sales.
Each arrangement is 17 (cost) and is sold for 25, so the profit from each arrangement is:
25 - 17 = 8
So, with each arrangement sale, we make profit of $8. How many of these we need to sell in order to break even (in order to make 15,000)??
We simply divide this amount (15,000) by the profit we make from each arrangement ($8), so that would be:
Number of Arrangements Needed to Break-Even = 15,000/8 = 1875
After 1875 arrangements, the boutique breaks even.
Given that Johan takes-out a 20 year mortgage at 4% to buy a house. If he looks at investing in 20-year, fixed rate Treasuries, the most likely closest to the coupons of the treasuries is 3.8%, this is because any other rates apart from this will lead to an arbitrage opportunity. This means that if the percentage of the coupons are high, Johan may invest his proceeds from mortgage to treasuries and earn risk free interest. The right rate is 3.9%
