Answer:
1. $425,000
2. 10.49%
3. 1.25
4. 13.11%
Explanation:
The computations are shown below:
1. For Average operating assets
= (Beginning Operating Assets + Ending Operating Assets) ÷ 2
= (390,000 + 460,000) ÷ 2
= $425,000
2. For margin:
= Net Operating Income ÷ Sales × 100
= $55,750 ÷ $531,250 × 100
= 10.49%
3. For turnover:
= Sales ÷ Average Operating Assets
= $531,250 ÷ $425,000
= 1.25
4. For return on investment:
= Net Operating Income ÷ Average Operating Assets
= $55,750 ÷ $425,000
= 13.11%
Answer:
$200,000
Explanation:
Selling price per unit = $60.00
Contribution margin per unit = $45.00
Total fixed costs = $150,000
Tax rate = 30%
Contribution margin ratio = Contribution margin ÷ Selling price
= $45 ÷ $60
= 0.75
Hence,
Break-even point =Total Fixed costs ÷ Contribution margin ratio
= 150,000 ÷ 0.75
= $200,000
Answer:
The correct answer is 777.169.56.
Explanation:
According to the scenario, the given data are as follows:
Payment per year (PMT) = $3,000
Time (N) = 40 years
Rate of interest (R)= 8%
So, the future value of the following can be calculated by using the following formula:
Future value = PMT ×
Now, put the value of the following in the formula. then,
= 3,000 ×
= 3,000 × 259.0565
= 777,169.56
Hence, the value in the account after 40 years will be 777,169.56.
Answer:
Falls:rises.
Explanation:
The MU/P (Marginal Utility/Price) ratio for good X is greater than the MU/P (Marginal Utility/Price) ratio for good Y. To achieve consumer equilibrium, the consumer reallocates dollars from the purchase of good Y to the purchase of good X. If the law of diminishing marginal utility holds, the marginal utility of good X falls and the marginal utility of good Y rises.
The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
Also, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
Hence, the marginal utility of good X falls and the marginal utility of good Y rises because the consumer no longer derive satisfaction or benefits (utility) from the consumption of good X while he would switch to good Y for satisfaction.
She profits more each month