A shop that sells one type of thing
Answer:
$63,260
Explanation:
Break-even point is the level of Activity where a firm neither makes a profit nor a loss.
Break even point (Dollars) = Fixed Costs / Contribution Margin Ratio
Contribution Margin Ratio
Is calculated as := Contribution / Sales
= (Sales less Variable Costs) / Sales
= ($43,000+$56,000-$11,980-$14,750) / $99,000
= $72,270/$99,000
= 0.73
Break even point (Dollars) = $46,180 / 0.73
= $63,260
Answer:
C. regional
Explanation:
The advertising agency described in the question is said to do business with several companies in Mexico City. The agency has clear skills and know-how that cater to the Mexican public.
However, the agency does not do any business with international companies, meaning that the agency is strictly regional in scope.
Answer: Option C
Explanation: Capital asset pricing model is a method of computing cost of equity an entity has to bear for financing its projects.
It can be shown as following :-
Ke = Rf + β * (ERm - Rf)
where,
Rf = risk free rat
β = beta of the investment
ERm = expected rate of return
Ke = cost of equity
Hence, the correct option is C
Answer:
The most that Johnson would be willing to spend on this project is $167706.
Explanation:
the most that Johnson would be willing to pay
$42000*3.993
= 167706
Therefore, The most that Johnson would be willing to spend on this project is $167706.
