Answer and explanation:
a.
the table below shows the impact of dropping beta product
Loss of Contribution Margin if Beta is Dropped (75,000*64) -$4,800,000
Traceable Fixed Manufacturing Overhead (123,000*33) $4,059,000
Incremental Contribution Margin from Additional Alpha Sales (15,000*72)
$1,080,000
Increase in Net Operating Income if Beta is Dropped $339,000
Notes:
Contribution Margin Per Unit (Beta) = 150 (Selling Price) - 15 (Direct Material) - 28 (Direct Labor) - 20 (Variable Manufacturing Overhead) - 23 (Variable Selling Expenses) = $64 per unit
Contribution Margin Per Unit (Alpha) = 195 (Selling Price) - 40 (Direct Material) - 34 (Direct Labor) - 22 (Variable Manufacturing Overhead) - 27 (Variable Selling Expenses) = $72 per unit
check the attached files for additional details
where 9=b, 10=c, etc
Answer:
Multiple choices below are missing:
A) purchase Bond A
B) purchase Bond B
C) purchase neither A nor B at this time
D) negotiate a higher rate on Bond A
The correct option is A,purchase bond A.
Explanation:
By purchasing Bond A,Lee is assured interest payment of 7.5% for a period of twenty years,hence the issuer cannot call the bond if interest rate drops by 2% in order to issue a lower interest-bearing bond which would be cheaper cost-wise.
However, if Lee purchases Bond B with current coupon of 8.25%,the interest is only guaranteed for a period of two years,since the issuer has the prerogative of calling back the bond after two years should interest fall in order to issue another bond that commands lower interest rate.
Answer:
Credence Attributes
Explanation:
A credence good or service is a type of good/service with qualities that cannot be observed by the consumer after purchase, making it difficult to assess its level of satisfaction. Examples include expert services such as Tax advisory services, medical procedures, automobile repairs, and dietary supplements.
Because the quality of these products or service are unobservant through search or experience some providers tend to charge consumers at a premium for their provision.
if the discount (or interest) rate is positive, the future value of an expected series of payments will always exceed the present value of the same series
True
What is a discount(or interest) rate?
An interest rate is the rate of return the present value of the series can over as an interest over the investment time horizon.
On the premise that the interest rate is positive, it means that there would positive value-added over the investment period which increases the present value to ensure that the future value exceeds the present value
In other words, a positive discount or interest ensures a higher future value
Find out more about future value on:brainly.com/question/24703884
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is the total implied increase in economic spending activity from a government stimulus of
billion
<u>Explanation:
</u>
The median product preference tests the increase in expenditure due to changes in availability.
In increasing government expenditure, total economic investment would be increased by the scale of the budget multiplier. In other terms, the expenditure equation indicates how much GDP can increase as government expenditure increases.
The spending multiplier can be expressed as 

So, the total implied increase in economic spending is 
In economics, marginal propensity to consume (MPC) is the proportion of an aggregate raise in pay that consumer spends on the consumption of services and goods, as opposed to saving it.