Alfa Co. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What is the amount of sales that will be necessary to earn the desired profit

Answers

Answer 1

Answer:

Break-even point in units=  25,000

Break-even point (dollars)= $125,000

Explanation:

To calculate the number of units to be sold and the sales dollars required, we will use the break-even point analysis. The following formulas are required:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (30,000 + 20,000) / (5 - 3)

Break-even point in units=  25,000

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= 50,000 / (2/5)

Break-even point (dollars)= $125,000

Answer 2

The amount of sales that will be necessary to earn the desired profit is $125,000.

Desired profit

Contribution margin ratio:

Contribution margin ratio=5-3/5

Contribution margin ratio=2/5

Contribution margin ratio=0.4

Desired profit= (Fixed costs + Target profit) / Contribution margin ratio

Desired profit=(30,000 + 20,000) / 0.4

Desired profit=50,000/0.5

Desired profit=$125,000

Inconclusion the amount of sales that will be necessary to earn the desired profit is $125,000.

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Related Questions

Question 1: Sales price variance, sales volume variance, and fixed cost variance Budgeted Actual Price $300 $350 Sales volume in units 80 75 Unit VC $100 $120 Fixed costs $100,000 $120,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance F U sales volume variance F U fixed cost variance F U b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number. sales price variance

Answers

Answer:

a-1 Sales price variance is favorable (F).

a-2 Sales volume variance is favorable (F).

a-3 Fixed cost variance is unfavorable (U).

b-1 Sales price variance  = $3,750

b-2 Sales volume variance = -$1,500

b-3 Fixed cost variance = -$20,000

Explanation:

Note: This question is not complete an the data in its are merged together. The complete question with the sorted data are therefore provided as follows:

Question 1: Sales price variance, sales volume variance, and fixed cost variance

                                     Budgeted             Actual

Price                                 $300                    $350

Sales volume in units          80                         75

Unit VC                             $100                     $120

Fixed costs               $100,000              $120,000

a) Without computations, characterize the following variances as favorable or unfavorable:

sales price variance F U

sales volume variance F U

fixed cost variance F U

b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.

sales price variance

sales volume variance F U

fixed cost variance

The explanation of the answers is now given as follows:

a) Without computations, characterize the following variances as favorable or unfavorable:

a-1 Sales price variance F U

When the Actual price is greater than the Budgeted price, Sales price variance is favorable (F). But when the Actual price is less than the Budgeted price, Sales price variance is unfavorable (U).

Since the Actual price is greater than the Budgeted price in this question, the Sales price variance is favorable (F).

a-2 Sales volume variance F U

When the Actual sales volume in units is greater than the Budgeted sales volume in units, Sales volume variance is favorable (F). But when the Actual sales volume in units is less than the Budgeted sales volume in units, Sales volume variance is unfavorable (U).

Since the Actual sales volume in units is less than the Budgeted sales volume in units in this question, the Sales volume variance is unfavorable (U).

a-3 Fixed cost variance F U

When the Actual Fixed costs is less than the Budgeted Fixed costs, Fixed costs variance is favorable (F). But when the Actual Fixed costs is greater than the Budgeted Fixed costs, Fixed costs variance is unfavorable (U).

Since the Actual Fixed costs is greater than the Budgeted Fixed costs in this question, the Fixed costs variance is unfavorable (U).

b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.

b-1 Calculation of sales price variance

This can be calculated as follows:

Sales price variance = (Actual price - Budgeted price) * Actual sales volume in units = ($350 - $300) * 75 = $3,750

b-2 Calculation of sales volume variance

This can be calculated as follows:

Sales volume variance = (Actual sales volume in units - Budgeted sales volume in units) * Budgeted price = (75 - 80) * $300 = -$1,500

b-3 Calculation of fixed cost variance

Fixed cost variance = Actual fixed costs - Budgeted fixed costs = $120,00 - $100,000 = -$20,000

Managers have to consider several contingencies when deciding on the best arrangements for their organizations. One such contingency is the organization's environment, and managers must determine whether a mechanistic or an organic structure will work better under their particular circumstances. This activity is important because the type of organizational structure chosen can be critical to an organization's success. The goal of this exercise is to test your knowledge of the characteristics of these two different organizational structures. Select the most appropriate category (mechanistic or organic structure) for each step of the characteristics of organizations.
1. Few rules and procedures (Click to select)
2. Narrow span of control (Click to select)
3. Specialized tasks (Click to select)
4. Many teams or task forces (Click to select)
5. Many rules and procedures (Click to select)
6. Decentralized hierarchy of authority (Click to select)
7. Flatter structure (Click to select)
8. Informal communication (Click to select)
9. Taller structure (Click to select)
10. Centralized hierarchy of authority (Click to select)
11. Wider span of control (Click to select)
12. Shared tasks (Click to select)
13. Formalized communication (Click to select)
14. Few teams or task forces (Click to select)
15. Best for companies operating in stable environments. (Click to select)
16. Best for companies that need to respond to rapidly changing consumer tastes. (Click to select)

Answers

Answer:

Mechanistic structures are more centralized in nature. This makes them rigid as decisions come from the top but because there is little micro-management, the company will rely on clear rules for employees to get things done. Communication is vertical.

Organic structures on the other hand, are more decentralized. Communication is horizontal but goes vertical as well and rules are more flexible.

Mechanistic Structure:

Narrow span of control Specialized tasksMany teams or task forcesMany rules and proceduresTaller structureCentralized hierarchy of authorityFormalized communication Best for companies operating in stable environments.

Organic Structures

Few rules and proceduresDecentralized hierarchy of authority.Flatter structure.Informal communication Wider span of controlShared tasks  Few teams or task forces Best for companies that need to respond to rapidly changing consumer tastes.

Thomlin Company forecasts that total overhead for the current year will be $11,898,000 with 156,000 total machine hours. Year to date, the actual overhead is $7,955,000 and the actual machine hours are 85,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$140 per machine hour b.$51 per machine hour c.$76 per machine hour d.$94 per machine hour

Answers

Answer:

Predetermined manufacturing overhead rate= $76.27 per machine hour

Explanation:

Giving the following information:

Thomlin Company forecasts that total overhead for the current year will be $11,898,000 with 156,000 total machine hours.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 11,898,000 / 156,000

Predetermined manufacturing overhead rate= $76.27 per machine hour

how does unsafe food harm us

Answers

Answer:

Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. Foodborne diseases impede socioeconomic development by straining health care systems, and harming national economies, tourism and trade.

so how do you make customers come and buy ur charm bracelets how do u advertise it.

Answers

Answer:

You could make advertisements and post them around your town. Ask your friends to spread the word in your school. Make a website. Read on how to start a small buisness.

Explanation: GOOD LUCK

Make an advertisement around your town, or spread the word to your classmates at school.

Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,450 at the end of ten years. Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be: Multiple Choice $6,805 and $54,440. $7,450 and $59,600. $7,450 and $53,150. $6,805 and $60,890.

Answers

Answer:

$6,805 and $60,890.

Explanation:

The computation of the depreciation expense for 2022 and the book value at December 31, 2022 is shown below;

Depreciation expense is

= (Cost - salvage value) ÷ useful life

= ($74,500 - $6,450) ÷ 10 years

= $6,805

And, the book value is

= $74,500 - ($6,805 × 2)

= $60,890

Probably the most important reason to have a partnership agreement is that ________. Group of answer choices it resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business it determines how the partnership and the partners will pay taxes it states the location and the purpose of the business

Answers

Answer:

It resolves potential sources of conflicts that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business

Explanation:

A partnership agreement is a formal document or a contract endorsed by all the parties to the partnership business, which contains right, responsibilities and obligations of each partners.

It is important for partners to have an agreement, because it is legal, hence each partner must act according to the terms contained in the agreement. The basic reason or one of the most important reason to have this partnership agreement is to avoid legal tussles in the future, which could lead to the dissolution of the partnership business.

Boehm Incorporated is expected to pay a $1.10 per share dividend at the end of this year (i.e., D1 = $1.10). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 15%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent. $

Answers

Answer:

$10

Explanation:

The dividend is $1.10

The constant rate is 4%

The required rate of return in the stock is 15%

Therefore the estimated value per share can be calculated as follows

= 1.10(0.15-0.04)

= 1.10/(0.11)

= $10

Hence the estimated valuee is $10

Schickel Inc. regularly uses material B39U and currently has in stock 456 liters of the material for which it paid $2618 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.20 per liter. New stocks of the material can be purchased on the open market for $5.80 per liter, but it must be purchased in lots of 1000 liters. You have been asked to determine the relevant cost of 750 liters of the material to be used in a job for a customer. The relevant cost of the 750 liters of material B39U is:

Answers

Answer:

the relevant cost of the 750 liters of material B39U is $4,350

Explanation:

The computation of the relevant cost of the 750 liters of material B39U is shown below:

Relevant cost = Purchase price per liter × Liters needed for the job

= $5.80 per liter × 750 liters

= $4,350 .

Hence, the relevant cost of the 750 liters of material B39U is $4,350

Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $41,600 for Division A. Division B had a contribution margin ratio of 45% and its sales were $271,000. Net operating income for the company was $34,000 and traceable fixed expenses were $59,100. Corbel Corporation's common fixed expenses were:

Answers

Answer:

$5,000

Explanation:

common fixed expenses = Contribution Margin - Net Income - traceable fixed expenses

                                          = $41,600 + $121,950 - $34,000 - $59,100

                                          = $70,450

Corbel Corporation's common fixed expenses were, $70,450

A sample of 240 observations is selected from a normal population standard deviation of 24​

Answers

216 easy I did this problem

Parker, Inc. has a cash balance of $20,000 on April 1. The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
April May June
Cash collections 25000 24000 24000
Cash payments:
Purchases of direct materials 4000 5300 6200
Operating expenses 5300 6000 5300
There are no budgeted capital expenditures during the quarter. Based on the above data, calculate the projected cash balance at the end of April.
a. $41,000
b. $35,000
c. $45,000
d. $25,000

Answers

Answer:

$35,700

Explanation:

Projected cash balance at the end of April = Cash Balance at the beginning of the month + Total cash collection in the month - Total cash payments during the month

Projected cash balance at the end of April = $20,000 + $25,000 - ($4,000 + $5,300)

Projected cash balance at the end of April = $35,700.

In 2019 a 90% owned subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. In 2020 the subsidiary sold $200,000 of goods to its parent and had $30,000 of unrealized gains. In 2020 parent reports Cost of Goods Sold of $4,000,000 and sub reports Cost of Goods Sold of $1,000,000. How much is Consolidated Cost of Goods Sold

Answers

Answer:

Consolidated Cost of Goods Sold is $4,970,000.

Explanation:

A 90% owned subsidiary presents a controlling interest and consolidated financial statements must be prepared by the Parent company.

In preparing consolidated financial statements, any transactions between the parent and subsidiary (Intragroup transactions) must be eliminated.

At Beginning of the year

Recognize the unrealized gains on intercompany sales as follows ;

Debit : Retained Earnings  $60,000

Credit : Cost of Sales  $60,000

During the year 2020

Eliminate unrealized gains on intercompany sales as follows

Debit : Cost of Sales $30,000

Credit : Inventory $30,000

Consolidated Cost of Goods Sold

To determine the Cost of Goods Sold add 100 % of Parent and 100% of Subsidiary and also remember to effect the journals above as follows :

Cost of Goods Sold = $4,000,000 + $1,000,000 - $60,000 + $30,000

                                 = $4,970,000

Conclusion

Therefore, Consolidated Cost of Goods Sold is $4,970,000.

Vaughn Manufacturing, has 14900 shares of 4%, $100 par value, cumulative preferred stock and 60000 shares of $1 par value common stock outstanding at December 31, 2021. There were no dividends declared in 2019. The board of directors declares and pays a $102000 dividend in 2020 and in 2021. What is the amount of dividends received by the common stockholders in 2021

Answers

Answer:

$25,200

Explanation:

The computation of the dividend received by the common stockholder for the year 2021 is shown below:

The Annual preferred dividend is

= 14,900 × $100 × 4%

= $59,600

Dividend due to preferred dividend in 2020

= Arrears of 2019 + Dividend of 2020

= $59,600 + $59,600

= $119,200

But the Dividend Paid in 2020 is $102,000

Arrears of dividend at the end of 2020 (Preferred) is

= $119,200 - $102,000

= $17,200

Now,

Dividend paid to preferred in 2021 = 2021 dividend + Arrears

= $59,600 + $17,200

= $76,800

Now Dividend paid to Common stockholders in 2021 is

= Total dividend - Dividend paid to preferred in 2021

= $102,000 - $76,800

= $25,200

Use the compounding or discounting formula to answer the questions. Round answers to the nearest dollar. a. Your small business has a cash reserve of $200,000, earning 2% annual interest. How much will your cash reserve be worth in 3 years? $ b. You want $1 million in your retirement account in 50 years. If your account grows at an annual rate of 4%, how much do you have to deposit today to reach $1 million in 50 years?

Answers

Answer:

a.

Future value - Cash Reserve = $212241.6

b.

Present value of deposit = $140712.615333 rounded off to $140712.62

Explanation:

a.

To calculate the value of cash reserve in 3 years, we will calculate the future value of the cash flow using the following formula,

Future value = Present value * (1 + r)^t

Where,

r is the rate of interest or returnt is the number of periods

Future value - Cash Reserve = 200000 * (1+2%)^3

Future value - Cash Reserve = $212241.6

b.

To calculate the amount of deposit today, we need to calculate the present value of $1 million which are after 50 years from today. The formula to calculate the present value is as follows,

Present Value =  Future value / (1 + r)^t

Where,

r is the interest rate or rate of return or discount ratet is the number of periods

Present value = 1000000 / (1+4%)^50

Present value = $140712.615333 rounded off to $140712.62

Selected transactions for Cullumber Company are presented below in journal form (without explanations).
Date Account Title Debit Credit
May 5 Accounts Receivable 4,750
Service Revenue 4,750
12 Cash 1,200
Accounts Receivable 1,200
15 Cash 2,260
Service Revenue 2,260
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)

Answers

Answer and Explanation:

The posting of the given transactions to T accounts are presented below:

Cash account

May 12 Account receivable $1,200

May 15  Service revenue $2,260

Account receivable

May 5 Service revenue $4,750    May 12  Cash $1,200

Service revenue

                                                         May 15 Account receivable $2,260

                                                           May 5  Servcie revenue $4,750

Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $170,000; beginning inventory $125,000; cost of goods sold $351,050 and sales revenue $761,000.

a. Calculate the inventory turnover for Oakley, Inc.
b. Calculate the days in inventory for Oakley, Inc.

Answers

Answer and Explanation:

The computation is shown below:

a. The inventory turnover is

= Cost of Goods Sold ÷  Average Inventory

= $351,050 ÷ ($170,000 + $125,000) ÷ 2

= $351,050 ÷ $147,500

= 2.38 times

b. Now days in inventory is

= 365 ÷ inventory turnover ratio

= 365 ÷ 2.38 times

= 153.36 days

I need help with this question

Answers

Answer:

still need help ?

Explanation:

Answer:

true

Explanation:

Sage Hill Inc. wishes to lease machinery to Thiensville Company. Thiensville wants the machinery for 4 years, although it has a useful life of 10 years. The machinery has a fair value at the commencement of the lease of $47,000, and Sage Hill expects the machinery to have a residual value at the end of the lease term of $27,000. However, Thiensville does not guarantee any part of the residual value. Thiensville does expect that the residual value will be $45,000 instead of $27,000.

Required:
What would be the amount of the annual rental payments Sage Hill demands of Thiensville, assuming each payment will be made at the end of each year and Sage Hill wishes to earn a rate of return on the lease of 6%?

Answers

Answer:

bud im sorry but cay you simplify this sentance

Explanation:

$29198 / [ 1 - ( 1 + 0.06 )-4 / 0.06 ]

= $29198 / 3.46510561283

= $8426 [ Rounded off to zero decimal places ]

bud i tried but i think its wrong im only in 6th

Wearing a headset or earplugs while driving is legal
A. As long as you keep the volume down
B. For any person operating an authorized emergency vehicle
C. Even if you keep both ears covered
D. Only if your radio is broken

Answers

the answer would be B
The answer is B I hope

Here are a series of Mondelēz’s publicly announced objectives for enhancing sustainability:
Reducing production waste to landfill sites by 60 percent
Reducing our energy and GHG in manufacturing
Educating employees to reuse water and improve processes
Reducing the impact of our operations
Addressing child labor in the cocoa supply chain
Reducing packaging material
Eliminating 50 million pounds of packaging material
Buying certified commodities
Which of these are best considered strategic plans? Tactical plans? Operational plans? Which ones might qualify as programs? Projects? Policies? Be sure to explain your reasoning for each item.

Answers

Answer:

Strategic plans are made by the upper echelon of a company's management. They are long term and done with the intent to achieve company wide missions and visions.

Tactical plans come next and are made by the middle-level managers. They are not as long term as strategic plans and are typically less than a year but more than half a year. They are done to meet the strategic plans.

Operational plans are not very long term and are typically under half a year. They aim to meet strategic plans and are done by low-level management. It is usually detailed as it aimed at a particular goal.

Strategic Plans

Reducing production waste to landfill sites by 60 percent.Reducing the impact of our operations. Addressing child labor in the cocoa supply chain.

Tactical Plans

Reducing our energy and GHG in manufacturing.Educating employees to reuse water and improve processes.Reducing packaging material.

Operational Plans

Eliminating 50 million pounds of packaging material.Buying certified commodities.

Projects are specific and so have specific goals as they aim to achieve a particular mission. They have a defined start and finish.

Programs on the other hand are a group of projects which would produce individual results that when put together, contribute to the larger goal of the program.

Policies are the guidelines that a company institutes in order to meet their goals.

Projects

Reducing production waste to landfill sites by 60 percent.Eliminating 50 million pounds of packaging material.Educating employees to reuse water and improve processes.

Policies

Buying certified commodities.Reducing packaging material.Addressing child labor in the cocoa supply chain.

Programs

Reducing our energy and GHG in manufacturing.Reducing the impact of our operations.

Based on the information given, the strategic plans will be:

Reducing production waste to landfill sites by 60 percent.Reducing the impact of our operations.Addressing child labor in the cocoa supply chain.

The tactical plans will be:

Reducing our energy and GHG in manufacturing.Educating employees to reuse water and improve processes.Reducing packaging material.

The operational plans will be:

Eliminating 50 million pounds of packaging material.Buying certified commodities.

The projects are:

Reducing production waste to landfill sites by 60 percent.Eliminating 50 million pounds of packaging material.Educating employees to reuse water and improve processes.

The policies are:

Buying certified commodities.Reducing packaging material.Addressing child labor in the cocoa supply chain.

The programs are:

Reducing our energy and GHG in manufacturing.Reducing the impact of our operations.

Strategic plans are used for the determination of the vision of the company and the identification of goals.

Tactical plans are important to achieve strategic plans. Operational plans are required for planning strategic objectives.

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Wilton sells softball equipment. On November 14, they shipped $3500 worth of softball uniforms to Paola Middle School, terms 1/10, n/30. On November 21, they received an order from Douglas High School for $2000 worth of custom printed bats to be produced in December. On November 30, Paola Middle School returned $400 of defective merchandise. Wilton has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?

Wilton sells softball equipment. On November 14, t
A. $3500
B. $5900
C. $3100
D. $5500

Answers

Answer:

$3,100

Explanation:

Net Accounts Receivable = Received order from Douglas high school - Return from Paola middle school

Net Accounts Receivable = $3,500 - $400

Net Accounts Receivable = $3,100

So, the amount that will be recognized as net accounts receivable on the balance sheet as of November 30 is $3,100

The sticker price for a new car takes into account the compensation made to the salesperson who managed the sale. This compensation is an example of what type of cost?
A): dealer cost
B): shipping cost
C): manufacturing cost
D): sales commission

Answers

Answer:

D

Explanation:

cuz its D

This compensation is an example of sales commission cost. Thus, option D is correct.

What is manufacturing cost?

The expenses incurred during the creation of a product are known as manufacturing costs. Direct material, direct labor, and manufacturing overhead costs are included in these expenses. Normally, the costs are shown as separate line items in the revenue statement. These expenses are incurred by an entity during the production process.

The materials employed in a product's construction are referred to as direct materials. The amount of the production process's labor costs that is specifically attributed to a unit of production is known as direct labor. The application of manufacturing overhead costs to units of production depends on many alternative allocation schemes, such as the number of direct labor hours or machine hours used.

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#SPJ2

this is my Halloween costume​

Answers

Answer:

Crankyyyy um. lolipop

Explanation:

u Look

Personalities fit into at least one of (blank)
different categories.


A.ten



B.seven


C.three



D.five

Answers

I think the answer is five

Janelle is into running. As soon as she gets home from work at the hospital, she changes into her running clothes, puts on her high-quality running shoes, and goes outside to run. When her schedule permits it, Janelle participates in 5K runs to raise money for children's charities. She has met many friends who are also involved in running. The running groups that Janelle is involved with are examples of _______. a. income segmentation b. benefit segmentation c. geodemographic segmentation d. lifestyle segmentation

Answers

Answer:

d. lifestyle segmentation

Explanation:

Segmentation is the way in which various criteria is used to seperate the target market of a set of products.

In the given instance Janelle is involved in a lifestyle segment that is categorised on the basis of similar lifestyle.

She likes to run. This is a type of lifestyle, so the groups that she is involved with that also like running are an example of a lifestyle segmentation

A state department of health is considering a public awareness campaign to encourage vaccination. It determines that the cost of this campaign would be $760,000 per year for the next 6 years. It estimates that the campaign would reduce rates of illness and communicable disease. At the end of the first year of the campaign, the resulting savings would be $1,000,000; the savings would decrease by $80,000 each of the following 5 years. Assuming a discounting factor of 5%, compute the benefit cost ratio.

Answers

Answer:

1.068

Explanation:

The benefit cost ratio is used to determine the profitability of an investor. It is determined by dividing the present value of benefit by the present value of cost

Benefit cost ratio (BC) = present value of benefits / present value of costs

if BC is greater than 1, the project is profitable

If BC is less than 1, the project is not profitable

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Present value of the costs

Cash flow each year from year 1 to 6 = $760,000

I = 5

PV =  3,857,525.97

Present value of benefits

Cash flow in year 1 =  $1,000,000

Cash flow in year 2 =  $1,000,000 - $80,000 = $920,000

Cash flow in year 3 = $920,000 - $80,000 = 840,000

Cash flow in year 4 =  840,000 - $80,000 = 760,000

Cash flow in year 5 = 760,000 - $80,000 = $680,000

Cash flow in year 6 =  $680,000 -  $80,000 =  $600,000

I = 5%

PV BENEFIT = 4,118,252.57

BC ratio = 4,118,252.57 / 3,857,525.97 = 1.068

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

MyPillow uses television advertising and wanted to see whether the TV ads reached more viewers during the daytime spots or the prime-time spots. MyPillow wanted to adjust its TV spots to reach the greatest number of viewers. To get real-time reactions, MyPillow decided to conduct mobile market research because _______. a. most people do not multitask using smartphones b. using a mobile app is difficult and confusing c. most people do not use their desktop computers while watching TV d. fewer respondents are reached than in conducting telephone research

Answers

Answer:

c

Explanation:

If MyPillow wants to get real time update, it means it wants to get update as people are watching tv. In order to reach its audience, it would be right to reach them on the medium they use while watching tv. If most people do not use their desktop computers while watching TV , it would not be appropriate to use desktop computers.

But if people watch tv and use their phone, the appropriate means of carrying this research is through mobile.

Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate is 6%A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 30%. a. What is the investment proportion, y

Answers

Answer:

y = 0.76923076923  or  76.923076923%  rounded off to 76.92%

So, 76.92% of the portfolio should be invested in risky portfolio.

Explanation:

The portfolio standard deviation for a portfolio consisting of two securities with one of them being the risk free security is calculated by multiplying the standard deviation of the risky security by the weightage of investment in the risky security as a proportion of the overall investment in portfolio. The formula can be written as follows,

Portfolio STDEV = Weight of Risky Asset  *  STDEV of risky asset

30% = y  *  39%

30% / 39% = y

y = 0.76923076923  or  76.923076923%  rounded off to 76.92%

Assume that JQH’s returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?Assume that JQH’s returns are normally distributed. The expected return for JQH is 10% and standard deviation is 5%. What is the probability of JQH stock providing a return within the range 15% to 20%?2.5%16%68%13.5%none

Answers

Answer:

13.5%

Explanation:

From this question we have the following information

We have mean return = 10

Standard deviation = 5

We use this formula

Z = x - mean/standard deviation

X is between 15 and 20

15< X< 20

= 15-10/5 < Z < 20-10/5

= 1 < z < 2

Using the Statistical table,

P(z < 2) = 0.9772

P(z< 1) = 0.8413

0.9772 - 0.8413 = 0.1359 x 100

= 13.5%

The probability of JQH stock providing a return within the range 15% to 20% = 13.5%

Thank you

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