Answer:
Monthly payment: 460.41 dollars
Effective rate: 4.07%
Explanation:
we will calculate the PTM of an annuity of 25,000 over 5 year at 4%
PV $25,000.00
time 60
rate 0.003333333
C $ 460.413
Now we need to know the effective rate, which is the same as 4% compounding monthly:
![(1+0.04/12)^{60} = (1+ r_e)^{5}\\r_e = \sqrt[5]{(1+0.04/12)^{60}} - 1](https://tex.z-dn.net/?f=%281%2B0.04%2F12%29%5E%7B60%7D%20%3D%20%281%2B%20r_e%29%5E%7B5%7D%5C%5Cr_e%20%3D%20%5Csqrt%5B5%5D%7B%281%2B0.04%2F12%29%5E%7B60%7D%7D%20-%201)
effective rate = 0.040741543 = 4.07%
B.below the equilibrium price, causing a surplus
Answer:
D. No seller can influence the price of the product
Explanation:
A perfect market for competition is a market which has a high level of competition.
It has the following features-
1. With regard to the market, knowledge is perfect in this rivalry between producer and consumer.
2. Free entry, and exit
3. Deals with same or homogeneous products
4. The buyers and sellers are more in this market
5. There is no transport cost
Moreover, the average revenue and the marginal revenue are equal.
So, the correct option is D.
Answer:
50,000 units are required to break even
Explanation:
Eclypso Company
Product X Product Y
Unit selling price $10.00 $10.00
Less
Unit variable costs:
Manufacturing $ 6.00 $ 7.00
Selling 1.00 1.00
Total variable costs $ 7.00 $ 8.00
Contribution Margin per unit 3 2
Monthly fixed costs are as follows:
Manufacturing $ 90,000
Selling and administrative 50,000
Total fixed costs $140,000
Weighted Contribution Margin per unit = ($3 * 80% + $ 2 * 20%)= 2.4+ 0.4=
$ 2.8
Combined Break Even Volume = Fixed Costs/ Weighted Contribution Margin Per unit
Combined Break Even Volume = $ 140,000/ 2.8=50,000
Example of a check. Look at the image I attached.