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Sati [7]
3 years ago
8

Jungle, Inc., currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms

of net 30 days. Based on the following information, what is the break-even price per unit under the new credit policy? The required return is .83 percent per month. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current Policy New Policy
Price per unit $ 210 ?
Cost per unit $ 158 $ 163
Unit sales per month 1,530 1,570


Break-even price $
Business
1 answer:
disa [49]3 years ago
6 0

Answer:

The break even price is $215.45

Explanation:

Break even Price = [ (Profit as per existing policy / Units under new policy) + Cost] × (1 + Required Return)

=({ [ (Selling Price - Cost) × Units sold under under existing policy] / Units under new policy} + Cost )× (1 + Required Return)

=( { [($210 - $158) × 1530] / 1570 }+ 163 )×  ( 1 + 0.83%)

= ( { [ 52 ×  1530] / 1570} + 163 ) ×  (1.0083)

= ( [79560 / 1570] + 163) ×  1.0083

= [ 50.68 + 163] ×  1.0083

= 213.68 ×  1.0083

= 215.45

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<h3>What is agency shop?</h3>

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7 0
2 years ago
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<u>Explanation:</u>

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3 0
4 years ago
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6 0
4 years ago
MC algo 8-18 Valuing Stock Asonia Co. will pay a dividend of $5.10, $9.20, $12.05, and $13.80 per share for each of the next fou
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Answer:

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Explanation:

The computation of the stock price is shown below

Stock Price is

= [$5.10 ÷ (1 + 0.094)^1 + $9.20 ÷ (1 + 0.094)^2 + $12.05 ÷ (1 + 0.094)^3 + $13.80 ÷ (1+0.094)^4]

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4 0
3 years ago
Suppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed will a. decrease, and pro
Marta_Voda [28]

Answer:

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If grass seed is a normal good, when income rises, demand increases and the demand curve shifts to the right. This would lead to an increase of demand over supply which would lead to a rise in price.

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