It should be noted that the contribution margin is first used to cover fixed expenses.
<h3>
What is contribution margin?</h3>
The contribution margin simply shows you the aggregate amount of revenue that is available after variable costs to cover fixed expenses.
Contribution margin is first used to cover fixed expenses. Once the break-even point has been reached, the contribution margin becomes profit.
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Answer:
1.15%.
Explanation:
This can be calculated as follows:
Yield be on a 10-year TIPS = Rate of return on the 10 year T-bond - Average Inflation - Market Risk Premium (MRP)
Therefore, we have:
Yield be on a 10-year TIPS = 4.05% - 2.0% - 0.9% = 1.15%
Therefore, the yield on a 10-year TIPS should be 1.15%.
Answer:
Golden Circle
Explanation:
-Persona creation process is the process to generate a representation of a specific customer that will use your product.
-Golden Circle is a model that helps companies to find the best form to provide value to their customers and differentiate from the competition.
-Inbound Methodology is a process that organizations use to turn leads into customers.
-Buyer's journey is a process that includes all the stages that a customer pass through from realizing the need to making a purchasing.
According to this, the answer is that the Golden Circle can help you develop a mission statement that connects with your audience because it can help you to develop a message that would attract your target customer and get a position in their mind.
Answer:
Profit Maximisation
Explanation:
Profit is the difference between total revenue (receipts) from sale & total cost (expenditure) on production.
Total Revenue = Price x Quantity ; Total Cost = Average Cost x Quantity
Economists study all the producer behaviour, based on assumption that : Goal of firm is Profit Maximisation.
Maximising Profit implies maximising the difference between Total Revenue & Total Cost [ TR - TC] . This further leads to producer equilibrium rule of Marginal Revenue = Marginal Cost [MR = MC] ; i.e additional revenue per unit sold equals additional cost per unit production.
Answer:
The double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Explanation:
Calculatation of the after-tax return on both bonds
1)The double-exempt bond does not pay state or federal income taxes.
After-tax return =
Before-tax return = 4.9%
2)The tax-exempt bond is the state income taxes, but not federal in which the states can decide whether to tax their bonds or not.
Interest Income (100,000 * 5%) 5,000
Less: State taxes at 10% (5,000* 10%) (500)
Tax benefit from deduction of state taxes on federal return (500 * 35%) 175
After-tax Income 4,675
After-tax return = 4,675/100,000 = 4.675%
Therefore the double-exempt bond is the preferred investment because it has a higher after-tax return Tax benefit .
Hence the state income tax will be deductible on Juan’s federal tax return and Juan’s federal taxable income will be lower or lesser by $500 which will produces tax savings at his federal marginal tax rate of $500 * 35% = $175.
