Answer:
option $13.30
Explanation:
Data provided in the question:
Units sold = 50,000
Revenue = $850,000
Fixed cost = $210,000
Variable cost = $140,000
Selling and administrative costs:
Fixed = $300,000
Variable = $45,000
Tax rate = 40%
Production and sales for the next accounting period = 40,000
Now,
Total Contribution margin = Revenue - Variable cost
= $850,000 - $140,000 - $45,000
= $665,000
Therefore,
For 40,000 units
Contribution margin per unit
= ( Total contribution margin ) ÷ (Number of units sold )
= $665,000 ÷ 50,000
= $13.30
Note : Contribution margin remains the same in per unit
Hence,
For 40,000 sales the Contribution margin per unit will be option $13.30
Answer:
The answer is A) Rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.
Explanation:
Traditional economic theory is based on three fundamentals, the first one being we are all rational consumers or suppliers.
Alex is trying to earn some money, completely rational and intelligent. He is able to do it by satisfying his neighbors´ need for lawn mowing.
Is he greedy? Probably yes, but he is still rational. No one is forced to pay his fee, so his also rational neighbors will decide if the price is correct or not. Those who believe the price is correct will hire him. If someone believes his is charging too much and that they can offer the same service for a lesser price, should show up and offer their cheaper services.
Can people who buy a 25 million dollar car be considered irrational? No they can´t, because for them is probably an investment or they simply have tons of money and like extremely expensive cars. What one person considers expensive may be considered cheap by someone else.
Answer:
$87.25
Explanation:
Calculation for the effective price paid to repurchase the stock
Using this formula
Effective price = Strike Price + Price
Let plug in the formula
Effective price =$80+$7.25
Effective price =$87.25
Therefore the effective price paid to repurchase the stock will be $87.25
Answer:
The correct answer is B.
Explanation:
Giving the following information:
26,000 units:
Total variable costs= $448,500
Fixed costs= $507,000
<u>First, we need to determine the unitary variable cost:</u>
Unitary variable cost= 448,500/26,000
Unitary variable cost= $17.25
<u>Now, the total cost for 24,000 units:</u>
Total variable cost= 24,000*17.25= $414,000
Total fixed cost= $507,000
Total cost= $921,000
Answer:
1. True
Explanation:
The computation of the depreciation for 1998 under the double declining balance method is shown below:
First we have to find the depreciation rate which is
= One ÷ useful life
= 1 ÷ 4
= 25%
Now the rate is double So, 50%
In year 1, the original cost is $60,000, so the depreciation is $7,500 after applying the 50% depreciation rate and the 3 months
And, in year 2, the depreciation expense is
= ($60,000 - $7,500) × 50%
= $26,250
