Answer:
Demand would have to drop by 27,500 units and above
Explanation:
<em>With a proposed increase in price of 10%, Calypso would like break-even, that to ensure that its total revenue covers its total fixed costs. . This would mean the minimum quantity should be that which will produce a total contribution that covers the total fixed cost. And would produce a profit of zero.</em>
<em>New selling price after 10% Increase = 110% × $30 =</em><em> $33</em>
Minimum quantity = Total fixed / contribution per unit
<em>Contribution per unit = selling price - variable cost per unit</em>
= $33 - $25
= $8 per unit
<em>Minimum quantity = Total fixed cost/contribution per unit</em>
= 180,000/ 8
= 22,500 units
<em>The decrease in demand = Current quantity - minimum quantity</em>
= 50,000 - 22,500
= 27,500 units
Demand would have to drop by 27,500 units and above
I think it would be A) high wages for workers on large farms
Answer:
True
Explanation:
In this question, we have to find out the present value which is shown below:
= Annual payment × PVIFA for 5 years at 6
%
= $2,000 × 4.2124
= $8,424
Refer to the PVIFA table
Basically we multiply the annual payment with the PVIFA to allow the exact amount to arrive. The present value comes after taking the discount rate into account for the number of periods
Answer:
In the Debit Column of your Expense Account
Explanation:
Answer: 0.90 or 90%
Explanation:
The risky portfolio gives a return of 16% and the T-bill gives a 6% return.
Assume that proportion y is going into the risky portfolio and x is going into the T-bill.
The expected return for the overall portfolio = 15%
Use simultaneous equation:
x + y = 1
0.16y + 0.06x = 0.15
y = 1 - x
0.16 (1 - x) + 0.06x = 0.15
0.16 - 0.16x + 0.06x = 0.15
-0.1x = 0.15 - 0.16
x = -0.01/0.1
x = 10%
y = 1 - x
= 1 - 10%
= 90%
= 0.90