Answer:
Segment margin of product P-$27,500.00
Explanation:
The total company's segment margin is net income plus common fixed expenses.
Total segment margin=$19,500+$43,000=$62,500.00
Total segment margin can be determined as the segment margin of products Q and P
Segment margin of product Q is $35,000
segment margin of product P=$62,500-$35,000=$ 27,500.00
Hence ,the segment margin of product P is $ 27,500.00
Answer:
Option (d) is correct.
Explanation:
Given that,
Real risk-free rate of interest, r* = 3%
Inflation is expected to increase and the maturity risk premium is expected to be 0.1(t - 1)%.
where,
t is the number of years until the bond matures
It is given that expected inflation increases and maturity risk premium also increases with increase in the number of years. Hence, the yield curve is upward sloping.
The slope of the yield curve tells us about the direction of the short term interest rate in the near future. If the curve is downward sloping then this would indicates that all the financial markets expects a lower interest rate in the near future.
On the other hand, if the curve is upward sloping then this would indicates that all the financial markets expects a higher interest rate in the near future because central bank come out with a contractionary monetary policy. This means that central bank have to increase interest rate to decrease the money supply in an economy.
Answer:
a. $528,000
Explanation:
Burr, Inc.'s direct materials budget shows
total cost of direct materials purchases for
Particulars April May June
Direct Materials $400,000, $480,000 $560,000.
Cash payments are 60% in the month of purchase and 40% in the following month.
The budgeted cash payments for June will be 40% of may and 60% of June which is (0.4 x 480,000) + (0.6 x 560,000) = $528,000