Answer:
7.68 percent
Explanation:
Calculation to determine the risk premium on this stock
Stock risk premium = 1.09 (0.098 - 0.0275)
Stock risk premium = 1.09(0.0705)
Stock risk premium= 7.68 percent
Therefore the risk premium on this stock is 7.68 percent
Answer:
a. $720,000
Explanation:
Since in the question, it is given that the equipment is sold at the list price
The list price is $800,000 and the selling percentage is 90%
So, the revenue should be recorded
= List price × selling percentage
= $800,000 × 90%
= $720,000
Simply we multiplied the list with the selling percentage so that the correct amount can come
Answer:
e) $4,651
Explanation:
The break-even point is the level of activity that a company must operate to have its total cost equal to its total revenue. At this level of activity, the business makes a zero profit, as the total contribution is exactly the same as the total fixed cost.
It is important for the business to have an idea of the number of customers or units of product to sell inorder for it to cover its total fixed cost. This is the information the break-point analysis seeks to provide.
Working it out
Break-point in sales = Total General fixed cost/ Contribution margin ratio
Contribution margin ratio (CMR): Contribution is sales less variable costs. And the contribution margin ratio is the proportion of sales that is earned as contribution. The higher the better.
CMR = contribution/sales
Fixed cost = Contribution + net loss
We can now apply all these relationships to the question given:
Fixed cost = 1720 + 280
= 4,000
Contribution margin ratio = 1720/400 = 43%
Break-even sales ($) = 4000/0.43
= $4,651
Answer:
The correct answer is: Regarding the above, it is taken into account that the vast majority of new product ideas do not become marketable products, and most marketable products are failures. Perhaps hundreds of designs accompany each success. So it is the primary task of management to clearly assess the market in order to know what are the trends that allow a business duration over time.
Explanation:
The production or service execution process is the core process that encompasses all the operations carried out by an organization to transform requirements into a final product or service. The entries that involve orders and budgets become work orders that allow planning, design, manufacturing and execution, all supported by the support processes that involve purchases and resources. Finally, the exit of this activity constitutes the process of expedition and after-sale.
Answer:
a. LIFO.
Explanation:
The LIFO method refers to an inventory method that means the item which is last purchased should be sold first during the period of time. So in this inventory method the earliest cost in the closing inventory should be recorded
Therefore the given situation, the correct option is a.
And, the other options are wrong
