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3 years ago

Weidner Company sells 22,000 units at $30 per unit. Variable costs are $24 per unit, and fixed costs are $40,000.

Business

1 answer:

Tanzania [10]3 years ago

8 0

Answer:

See below

Explanation:

a. Contribution margin ratio

= (Unit price - Variable cost per unit) / Unit price

Unit price = $30 per unit

Variable cost per unit = $24 per unit

Therefore,

Contribution margin ratio = ($30 - $24) / $30

Contribution margin = $0.2

b. Unit contribution margin

= Selling price unit - Variable cost per unit

Selling price per unit = $30 per unit

Variable cost per unit = $24

Therefore,

Unit contribution margin = $30 - $24

Unit contribution margin = $6

c. Income from operations

Sales (22,000 units at $30)

$660,000

Less:

Variable cost (22,000 units at $24)

$528,000

Contribution margin

$132,000

Less:

Fixed costs

($40,000)

Net income

$92,000

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Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the compan

tester [92]

Answer:

Maximum price to be paid for the stock = $12.43

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

<em>Hence the value of the stock would be the present value of its future dividend discounted at 15%</em>

Year PV of dividend

1 8 ×1.15^(-1)

2 4 × 1.15^(-2)

3. 2 × 1.15^(-3)

4 2 × 1.15^(-4)

PV of dividend = (8 ×1.15^-1) + (4 × 1.15^-2) + (2 × 1.15^ -3) + (2× 1.15^-4) = 12.439

Maximum price to be paid for the stock = $12.43

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3 years ago

Big Johnson Products charges Moe's Meats a lower price for goods because Moe and Johnson play golf together regularly. Big Johns

artcher [175]

Answer:

Option A is correct,price discrimination

Explanation:

Price discrimination is charging different customers different prices in the same or different markets.

There are laws that frown against price discrimination in order to ensure fairness in business dealings and to ensure the activities of price discriminator does have negative effects on consumers or businesses that rely on the price discriminator for inputs.

A typical example of price discrimination is financial aid which is common with online courses,where certain people due to their peculiarities are offered financial assistance in their bid to study that is available to some other students.

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3 years ago

If a small company invests its annual profits of $150,000 in a stock fund which earns 18% per year, the amount in the fund after

kenny6666 [7]

Answer:

the amount in the fund after 10 years will be $785,075.04

Explanation:

The computation of the amount after 10 years is shown below"

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $150,000 × (1 + 0.18)10

= $785,075.04

Hence, the amount in the fund after 10 years will be $785,075.04

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3 years ago

An economist resigns her $100,000/year university teaching position to work fulltime in her own consulting business. In the firs

lilavasa [31]

Answer:

ii. Her accounting profit was $150,000

iii. Her economic profit was $50,000

Explanation:

The computation is shown below:

For accounting profit, it is

= Total revenues - total expenses i.e explicit cost

= $250,000 - $100,000

= $150,000

And, for economic profit

= Total revenues - total cost i.e explicit and implicit cost

= $250,000 - $100,000 - $100,000

= $50,000

Hence, the second and third options are correct

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4 years ago

55.The manager of Bonzai's Boutique has approved Carla's application for credit. The maximum payment that has been approved is $

rosijanka [135]

Answer:

$1,916.2

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. In this question the payment of $95 per month for 24 months at APR of 16% is an annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where P = Annual payment = $95

First, Calculate the effective rate

EAR = ( 1 + 16%/12 )^12 - 1 = 17.2%

r = rate of return = 17.2% annual = 17.2% / 12 = 1.44% per month

n = number of years = 24 months

Placing value in the Formula

PV of annuity = $95 x [ ( 1- ( 1+ 1.44% )^-24 ) / 1.44% ]

PV of Annuity = $1,916.2

8 0

3 years ago