Answer:
Difference= $1,000 increase
Explanation:
Giving the following information:
Selling price per unit: $30
Variable expenses per unit: $21
New selling price= 30 - 2= $28
New units sales= 13,000
<u>First, we need to calculate the current contribution margin:</u>
Total contribution margin= units sold*unitary contribution margin
Total contribution margin= 10,000*(30 - 21)
Total contribution margin= $90,000
<u>Now, the new contribution margin:</u>
Total contribution margin= 13,000*(28 - 21)
Total contribution margin= $91,000
Answer: In order to achieve a high rating on the economic freedom of the world index a government should allow labor, capital and goods to move freely without any restriction.
Explanation: In economic freedom, individuals have the opportunity to control their labor and property. The government is not telling them what they can and can not do, it is entirely up to them. Measuring economic freedom is based on the rule of law, government size, regulatory efficiency and open markets.
Answer:
the beta of the stock is 1.34
Explanation:
The calculation of the beta of the stock should be
As we know that
Expected rate of return = Risk free rate + beta × market risk premium
16.1 = 6.45% + beta × 7.2%
16.1% - 6.45% = beta × 7.2%
9.65% = beta × 7.2%
So, the beta should be
= 9.65% ÷ 7.2%
= 1.34
Hence, the beta of the stock is 1.34
