Answer:
The company should provide, in average, 90 jobs per month in order to break even.
Explanation:
We will assume that the variable costs are proportional to the quantity and thus VC=a*Q
the profit obtained is
profit = P*Q , (Price [$/job] * Jobs sold [jobs])
and the total costs are
total costs= FC+VC = FC + a*Q , FC=fixed costs
in order to break even the quantity sold should be enough to cover all costs, therefore
profit = total costs
P*Q = FC + a*Q → Q= FC/(P-a)
thus
Q= FC/(P-a) = $3240 / ($60/job - $24/job) = 90 jobs
Answer:
The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds
Explanation:
As in the given question, it is mentioned that the credit sale is made, so the owner would remember the delay between the sale and the actual collection so that he knows the gap between these two.
Moreover, for cash budgeting purposes, it is necessary to remember when the owner received the cash and the date on which credit sale was made.
So, all other options are incorrect because it doesn't make any comparison between these two thing which is important for cash budgeting purposes.
Hence, The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds
20%
<span>24 is what percent of 30 is equal to (24 / 30) x 100 = 80%.
</span>
Now we subtract 80% by 100.
80 - 100 = 20%
Hope this helped. Have a great night!
Answer:
$30.80
Explanation:
Intrinsic value
V0=D1/1+k +D2/(1+k)^2 +DH+PH/(1 +k)^H
Let plug in the formula
First step
V0=$1 × 1.2/(1+0.085) +($1 × 1.2)^2/(1+0.085)^2 +($1 × 1.2)^2*1.04/(0.085-0.04)*(1+0.085)^2
Second step
V0=1.2/1.085+1.44/1.007225+1.44*1.04/0.045*1.177225
Third step
V0=1.2/1.085+1.44/1.007225+1.4976/0.052975
Fourth step
V0=1.10599+1.42967+28.26993
V0=$30.80
Therefore the intrinsic value of its stock will be $30.80
