Answer:
II, III, IV are correct
Explanation:
According to my knowledge and understanding cash flow projection for a new product should include:
II. Capital expenditures for equipment to produce the new product,
III. Increase in working capital needed to finance sales of the new product,
IV. Interest expense on the loan used to finance the new product launch.
whereas Money already spent for research and development of the new product is irrelevant as it was incurred already and not incremental.
Answer:
using the right words and being brief
Producers often pass along price increases to customer.
Answer:
Total contribution margin= $60,000
Explanation:
Giving the following information:
Units sold= 3,000
Selling price per unit= $45
Unitary variable cost= $25
First, we will calculate the unitary contribution margin:
Unitary contribution margin= 45 - 25= $20
Now, total contribution margin:
Total contribution margin= 3,000*20= $60,000
Answer:
3 percent
Explanation:
A real interest rate is an interest rate which doesn't have impact of inflation and depicts the real cost of funds to the borrower and the real yield to the lender or an investor.
Inflation = (126-120)/120 = 5%
Real Interest Rate = Nominal Interest Rate - Inflation
= 8% - 5%= 3%
