The company's payments in equivalent equal payments amount to approximately $29,000.
To determine the company's equal payments for maintenance costs, we must consider inflation and calculate the present value of these expenses. Initially, we adjust the maintenance costs for inflation over the 5-year period:
Year 1: $25,000 * (1 + 0.07)^1 = $26,750
Year 2: $26,000 * (1 + 0.07)^2 = $28,222
Year 3: $27,000 * (1 + 0.07)^3 = $30,191
Year 4: $29,000 * (1 + 0.07)^4 = $33,068
Year 5: $32,000 * (1 + 0.07)^5 = $37,197
Next, we compute the present value of these adjusted costs by discounting each year's expense to present value using the desired return rate of 14% per year:
Year 1 Present Value: $26,750 / (1 + 0.14)^1 = $23,464
Year 2 Present Value: $28,222 / (1 + 0.14)^2 = $21,768
Year 3 Present Value: $30,191 / (1 + 0.14)^3 = $20,035
Year 4 Present Value: $33,068 / (1 + 0.14)^4 = $18,247
Year 5 Present Value: $37,197 / (1 + 0.14)^5 = $16,437
Finally, we determine the equivalent equal payments by summing the present values and dividing by the annuity factor. For a 5-year period at a 14% interest rate, the annuity factor is 3.433.
Total present value of costs: $23,464 + $21,768 + $20,035 + $18,247 + $16,437 = $100,951
Amount of the company's equal payments in actual dollars: $100,951 / 3.433 = $29,381 (rounded to the nearest thousand)
Hence, the company's payments in equivalent equal payments amount to approximately $29,000.
Know more about Company's Payment here:
https://brainly.com/question/3194825
#SPJ11
Let μ = E(X) and o² = Var(X). Choose ALL which, you think, are correct. E(2X+3) = 2µ+3 E(3x+2) = 3μ Var (2X+3)=40² ✓Var (X+3)=o²+3
If the mean and the variance are μ = E(X) and o² = Var(X), then the correct statements are:
E(2X+3) = 2μ+3
Var(X+3) = o²+3
Let's check each option:
» E(2X+3) = 2μ + 3
This is correct. The expected value of a linear transformation of a random variable is equal to the corresponding linear transformation of the expected value.
» E(3X+2) = 3μ
This is incorrect. The expected value of a linear transformation of a random variable is equal to the corresponding linear transformation of the expected value, so the correct expression would be E(3X) = 3μ + 2.
» Var(2X+3) = (2²) o²
This is incorrect. The variance of a linear transformation of a random variable is equal to the square of the linear transformation multiplied by the variance of the original random variable. So, the correct expression would be Var(2X) = (2²) o² = 4o².
» Var(X+3) = o² + 3
This is correct. The variance of a constant added to a random variable remains the same, so the variance of (X+3) is equal to the variance of X, which is o², plus the variance contributed by the constant, which is 0. Therefore, Var(X+3) = o² + 0 = o² + 3.
Therefore, the correct statements are:
E(2X+3) = 2μ+3
Var(X+3) = o²+3
Learn more about variance here:
https://brainly.com/question/30125349
#SPJ11
For the production function Q = 0.6LK, returns to scale:
Is increasing.
Is constant.
Can be increasing, decreasing, or constant depending on the values of L and K.
Is decreasing
For the production function Q = 0.6LK, returns to scale can be increasing, decreasing, or constant depending on the values of L and K.A production function is a relationship between inputs and outputs. A production function Q = f(L,K) tells us how much output can be produced from different combinations of labor L and capital K.
Returns to scale refer to the impact of proportionate increases in all inputs on output. Returns to scale are classified into three categories namely increasing returns to scale, constant returns to scale, and decreasing returns to scale. Increasing returns to scale occur when a proportionate increase in all inputs results in a more than proportionate increase in output. It occurs when there are economies of scale or the presence of specialization and division of labor in the production process.
Constant returns to scale occur when a proportionate increase in all inputs results in an equivalent proportionate increase in output. It occurs when the production function is linear and homogeneous or there are no economies of scale or diseconomies of scale in the production process. Decreasing returns to scale occur when a proportionate increase in all inputs results in a less than proportionate increase in output. It occurs when there are diseconomies of scale or production is technically inefficient.
For the production function Q = 0.6LK, returns to scale can be increasing, decreasing, or constant depending on the values of L and K.
To know more about production function visit:
https://brainly.com/question/13755609
#SPJ11
For the current period, a restaurant had sales of $400,000,
non-management salaries and wages of $125,000. Calculate the labour
cost percentage.
Select one:
a. 34%
b. 3.20%
c. 4.20%
d. 31.25%
The labour cost percentage for the restaurant is 31.25%.
To calculate the labour cost percentage, we need to divide the non-management salaries and wages by the total sales and multiply by 100.
Step-by-step explanation:
1. Calculate the labour cost:
Labour Cost = Non-management salaries and wages = $125,000
2. Calculate the labour cost percentage:
Labour Cost Percentage = (Labour Cost / Total Sales) x 100
Given:
Total Sales = $400,000
Labour Cost Percentage = ($125,000 / $400,000) x 100
= 0.3125 x 100
= 31.25%
Therefore, the labour cost percentage for the restaurant is 31.25%. The correct answer is option d) 31.25%.
To know more about labour costs click here:
https://brainly.com/question/15738969
#SPJ11
A stock has an expected return of 14.6 percent, a beta of 1.7,
and the return on the market is 9.3 percent. What must the
risk-free rate be? (Do not round intermediate calculations.
Enter your answer
When the stock has return on the market as 9.3 percent, the required risk free rate to be is 2.41%.
Given data: Expected return of the stock = 14.6%
Beta of the stock = 1.7
Return on the market = 9.3%
Let the risk-free rate be r
The Capital Asset Pricing Model (CAPM) is given by:
CAPM = r + β(Rmarket − r)
Where, r = risk-free rate,
β = beta of the stock,
R market = return on the market
Using the above formula and substituting the given values:
CAPM = r + β(Rmarket − r)
CAPM = r + 1.7(9.3% − r)
CAPM = r + 15.81% − 1.7r2.7
r = 15.81% − CAPM
r = (15.81% − CAPM) / 2.7
Now, substitute the values to get the answer:
r = (15.81% − 9.3%) / 2.7r = 2.41%
Therefore, the risk-free rate must be 2.41%.
To know more about CAPM visit:
brainly.com/question/32626026
#SPJ11
Big Sports University is planning to hold a fund raising banquet at one of the local country clubs. It has two options for the banquet: 1 Foothills Country Club a. Fixed rental cost of $600 b. plus $15.00 per person for food. Country Club a. Fixed rental cost of $1,080 b. It will have to hire a caterer who charges $12.00 per person for food. Big Sports has budgeted $900 for administrative and marketing expenses. It plans to hire a band, which will cost another $400. Tickets are expected to be $40 per person. Any other items required for the event will be donated by its local business supporters. What is the "operating income" assuming 250 people attend and option two is chosen?
The operating income, assuming 250 people attend and option two is chosen, is $4,620.
To calculate the operating income assuming 250 people attend and option two is chosen, we need to consider the revenue and expenses associated with the banquet.
Revenue:
Number of attendees: 250
Ticket price per person: $40
Total ticket revenue: 250 * $40 = $10,000
Expenses:
Fixed rental cost at Country Club B: $1,080
Catering cost per person: $12
Food cost for 250 people: 250 * $12 = $3,000
Administrative and marketing expenses: $900
Band cost: $400
Total expenses: $1,080 + $3,000 + $900 + $400 = $5,380
Operating Income:
Operating Income = Total Revenue - Total Expenses
Operating Income = $10,000 - $5,380 = $4,620
Therefore, the operating income, assuming 250 people attend and option two is chosen, is $4,620.
It's worth noting that the operating income calculation considers the revenue generated from ticket sales and subtracts all the expenses associated with the event.
The fixed rental cost, catering expenses, administrative and marketing expenses, and the band cost are all subtracted from the total ticket revenue to arrive at the operating income figure.
The operating income represents the financial result of the event, indicating the profit or loss generated after considering all the relevant revenue and expenses.
For more question on income visit:
https://brainly.com/question/28390284
#SPJ8
a real cost of tariffs and quotas that is difficult to measure is that they a real cost of tariffs and quotas that is difficult to measure is that they reduce wages. limit the quantity of imports. encourage rent seeking. shift income from consumers to producers.
A real cost of tariffs and quotas that is difficult to measure is that they encourage rent seeking.
What is tariff cost?Tariffs are the term for customs fees imposed on imported goods. Tariffs increase government revenue while giving locally produced items a price edge over imported versions of similar goods.
Tariffs may induce production to move to smaller companies with less scalability. The subject of reprisals is another. If one nation imposes import taxes, other nations will probably respond by imposing their own, which will reduce exports.
Learn more about cost at;
https://brainly.com/question/25109150
#SPJ4
a. What are the advantages and the disadvantages of purchasing an outlet from small franchise systems?
b. Develop a list of questions that a prospective franchisee should ask the franchisor and existing franchisees before deciding to invest in the franchises described here.
a. Advantages and disadvantages of purchasing an outlet from small franchise small franchises are just starting, they have minimal initial franchise franchisor can provide more personalized support to the franchisee, which is an franchisee would be able to become a big fish in a small pond and potentially obtain a protected won't have the same level of credibility or brand recognition as a may be forced to rely on the franchisor for advertising assistance,
which may or may not be b. List of questions that a prospective franchisee should ask the franchisor and existing franchisees before deciding to invest in the franchises described are a few questions that a prospective franchisee should ask the franchisor and existing franchisees before deciding to invest in the franchises of assistance do you provide to there any financial data
or audits available ton you tell me about your experience of financial support is available to you give me a list of current franchisees who I can the typical payback period fort does the royalty fee structure look training will I get as a is the average franchisee's it is the franchisee's role in advertising is the franchise's ongoing of product sourcing arrangements described are a few questions that a prospective franchisee should ask the franchisor and existing franchisees before deciding to invest in the franchises of assistance do you
To know more about franchise visit;
https://brainly.com/question/14034124
#SPJ11
If investors have homogeneous expectations, the market is efficient, and there are no taxes, no transactions costs, and no bankruptcy costs, the Modigliani and Miller Proposition I states that:
a. bankruptcy risk rises with more leverage.
b. managers cannot change the value of the company by using more or less debt.
c. managers cannot increase the value of the company by employing tax saving strategies.
The correct answer b. managers cannot change the value of the company by using more or less debt.
The Modigliani and Miller Proposition I, under the assumptions of homogeneous expectations, efficient markets, no taxes, no transactions costs, and no bankruptcy costs, states that the capital structure (mix of debt and equity financing) of a company does not affect its overall value. In other words, managers cannot increase or decrease the value of the company by changing the amount of debt used in its capital structure.
Therefore, option b. managers cannot change the value of the company by using more or less debt is the correct statement.
Learn more about capital structure.
https://brainly.com/question/28286399
#SPJ4
An economy has a fixed price level, no imports and no income taxes. MPC is 0.75 and real GDP is $150 billion. Government increases expenditures by $5 billion. Calculate the: 1. Multiplier and interpret the meaning of the multiplier. 2. Change in real GDP and new level of real GDP.
The multiplier in this economy is 4, meaning that for every one-dollar increase in government expenditures, the overall effect on the real GDP will be a four-fold increase. As a result, the change in real GDP will be $20 billion, and the new level of real GDP will be $170 billion.
1. To calculate the multiplier, we can use the formula: Multiplier = 1 / (1 - MPC).
Given that the marginal propensity to consume (MPC) is 0.75, we can substitute this value into the formula:
Multiplier = 1 / (1 - 0.75) = 1 / 0.25 = 4.
The multiplier of 4 signifies that an increase in government expenditures will have a four-fold effect on the real GDP. This occurs because when the government spends an additional dollar, it becomes income for someone in the economy. The individual who receives this income will likely spend a portion of it (based on the MPC), which then becomes income for someone else. This process continues as each subsequent recipient spends a portion of their income, leading to a chain reaction of increased spending and overall economic output.
2. To determine the change in real GDP, we can multiply the increase in government expenditures by the multiplier:
Change in real GDP = Increase in government expenditures * Multiplier
Change in real GDP = $5 billion * 4 = $20 billion.
Therefore, the change in real GDP is $20 billion. To find the new level of real GDP, we add the change to the initial GDP:
A new level of real GDP = Initial real GDP + Change in real GDP
New level of real GDP = $150 billion + $20 billion = $170 billion.
Hence, the new level of real GDP will be $170 billion.
To know more about GDP click here:
https://brainly.com/question/30504843
#SPJ11
A new company is considering opening a gym in the city. Give an example of an aggressive tactic Fit Fun might take to maintain its monopoly.
Fit Fun, a gym company that has a monopoly in the city, may use an aggressive tactic to maintain its position. One possible example of an aggressive tactic that Fit Fun may use is price undercutting.
This strategy involves lowering prices to a level that is below that of the competition to increase market share and make it difficult for competitors to survive.The objective of price undercutting is to make it impossible for new entrants or established competitors to compete with Fit Fun, as they cannot match its prices without suffering substantial losses.
As a result, the new company that wants to open a gym in the city may face significant challenges and hurdles in trying to compete with Fit Fun in terms of price
.To maintain its monopoly, Fit Fun could also use other aggressive tactics, such as heavy advertising, exclusive deals with suppliers or distributors, and pricing policies that make
it difficult for competitors to enter the market.
Learn more about pricing strategy at:
https://brainly.com/question/30167816
#SPJ11
In projecting the expected growth rate for Environ for the year 2022, you had three potential growth scenarios: (a) (8 points) In the base-case scenario, Environ plans to invest an extra $24 million in new projects, compared to $62 million for existing projects. Environ's expected return on equity for 2022 is expected to adjust from the current level to the industry average of 11%. Estimate the growth rate under this scenario. (b) (8 points) In the best-case scenario, Environ plans to double its current investment level, adding an extra $62 million for new projects over and above the current $62 million for existing projects. Its return on equity will jump to 15%, outperforming the industry average of 11%. Estimate the growth rate under this scenario. (c) (8 points) In the worst-case scenario, Environ will be faced with credit constraints that curtails its ability to finance new investment. As a result, Environ decides not to reinvest. Furthermore, return on equity will remain constant at its 2021 levels. Estimate the growth rate under this scenario. Vale Stoopro 50 Nuoro shares onding in millions To Assin 5 mins 5000 Tot Deen millions Book valueMarket value) 1500 Regression Bete 1.32 Market nok premium in 23 Pisk-free Rate 0.98 Income Statement for Environ Systems for the year ending December 2021 Revenue 2021 Gross sales 281, 263 (Less sales returns and allowances) (10.000 Net Sales 271,263 2020 196 884 (7000) 189,884 Cost of Goods Sold Cost of Goods Sold Gross Profit (Loss) 130,123 123,765 141,140 66,119 Expenses Advertising Depreciation Employee benefits Research and development Salaries and wages Other Total Operating Expenses Operating Income (Loss) Non-operating revenues, expenses, gains, losses (Less interest expense) Income Before Taves (Less income tax expense) Income From Continuing Operations 12 16.616 3,458 24.165 11,243 8,123 63.617 12 16,616 3,458 26,582 10,906 7,643 65,216 903 77,523 12,762 (6.113) 84,172 (1,069) 83,103 903 903 Below-the-Line Items Income from discontinued operations Extraordinary items Cumulative effect of accounting changes Net Income 83,103 903
(a) The growth rate under this scenario can be estimated as 5.13%.
(b) The growth rate under this scenario can be estimated as 10.28%.
(c) The growth rate under this scenario can be estimated as 0%.In the base-case scenario, the growth rate can be estimated as 5.13%.
Environ plans to invest an extra $24 million in new projects and $62 million for existing projects. Its expected return on equity for 2022 is expected to adjust from the current level to the industry average of 11%.In the best-case scenario, the growth rate can be estimated as 10.28%. Environ plans to double its current investment level, adding an extra $62 million for new projects over and above the current $62 million for existing projects. Its return on equity will jump to 15%, outperforming the industry average of 11%.In the worst-case scenario, the growth rate can be estimated as 0%. Environ will be faced with credit constraints that curtail its ability to finance new investment. As a result, Environ decides not to reinvest. Furthermore, return on equity will remain constant at its 2021 levels.
Know more about growth rate ere:
https://brainly.com/question/12445408
#SPJ11
Required information [The following information applies to the questions displayed below.] Steve Pratt, who is single, purchased a home in Spokane, Washington, for $545,000. He moved into the home on
1. Steve would need to recognize a gain of $352,500 on the sale of his primary residence.
2. Steve would need to recognize a gain of $352,500 on the sale of his vacation home.
How to solve for the gain1)
To determine the amount of gain he needs to recognize, we subtract his adjusted basis from the selling price. The adjusted basis is the original purchase price plus any qualifying improvements or expenses. Since we don't have information about any improvements or expenses, let's assume Steve didn't make any.
Gain = Selling Price - Adjusted Basis
Selling Price = $767,500
Adjusted Basis = $415,000
Gain = $767,500 - $415,000
Gain = $352,500
Therefore, Steve would need to recognize a gain of $352,500 on the sale of his primary residence.
2) If the home is considered Steve's vacation home and he vacations there for four months each year, it would not meet the requirements to be considered a primary residence. As a result, the exclusion for capital gains on the sale of a primary residence wouldn't apply.
In this case, Steve would be required to recognize the entire gain on the sale of the vacation home. The gain would be calculated in the same way as before:
Gain = Selling Price - Adjusted Basis
Selling Price = $767,500
Adjusted Basis = $415,000
Gain = $767,500 - $415,000
Gain = $352,500
Therefore, Steve would need to recognize a gain of $352,500 on the sale of his vacation home.
Read mfeo on home sale here:https://brainly.com/question/28186715
#SPJ4
Question
Steve Pratt, who is single, purchased a home in Spokane, Washington, for $415,000. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $767,500. (Leave no answer blank. Enter zero if applicable.)
1) What amount of gain will Steve be required to recognize on the sale of the home?
2) Assume the original facts, except that the home is Steve’s vacation home and he vacations there four months each year. Steve does not ever rent the home to others. What gain must Steve recognize on the home sale?
After graduation, you just got hired by an engineering company and you were planning to take a loan in order to purchase a new car. Let's assume that the bank is willing to offer you a personal loan with an annual interest rate of 7% compounded yearly. The car price is 25,739 JD and you are capable to pay 5,400 JD per year. After how many years you will be able to pay back the loan with the accumulated interest (use a spreadsheet to answer this question) and draw the cash flow diagram?
After 7 years you will be able to pay back the loan with the accumulated interest.
The given parameters of the question are as follows:
Principal amount= $25,739
Yearly payment= $5,400
Annual interest rate= 7%
Let us assume that the total number of years required to pay back the loan is "n." Then we can solve the above problem using the present value of annuity formula:
PV of Annuity = C × [(1 - (1 + r)-n) / r],
where
C = Periodic payment
r = Interest rate
n = Total number of payments (or periods)
PV of annuity is equal to the amount you would have to invest today at a certain interest rate to receive an equal payment each period for a specified number of periods. In this case, we want to find the number of periods, which is given by:
n = -log[(PV of annuity/r) / (PV of annuity/r - C)] / log(1 + r)
We have: C = $5,400r = 7% / year
PV of annuity = $25,739So,
PV of Annuity = $5,400 × [(1 - (1 + 7%)-n) / 7%] $25,739 = $5,400 × [(1 - (1.07)-n) / 0.07]
Now, we need to find out the value of "n."For that, we use the Goal Seek feature in Excel.To use Goal Seek:Enter the PV of annuity formula into a cell (e.g., =5400*((1-(1.07)^(-n))/0.07)-25739).Go to the Data tab, click on What-If Analysis, and then select Goal Seek.In the Goal Seek dialog box, set "Set Cell" to the PV of annuity cell that you just created, "To Value" to zero, and "By Changing Cell" to the cell containing "n."Click OK.After the calculation, we get n ≈ 6.91 years.
For more about interest:
https://brainly.com/question/30393144
#SPJ11
In the partnership form of business , limited life means that when a partnership cannot pay its debts, creditors usually can take partners personal assets.
a. True
b. False
The statement that in the partnership form of business , limited life means that when a partnership cannot pay its debts, creditors usually can take partners personal assets, is A. True.
What happens in a partnership ?In a partnership, the partners have unlimited liability, which means they are personally responsible for the debts and liabilities of the partnership.
However, limited life refers to the fact that a partnership is dissolved if one of the partners withdraws, dies, or becomes bankrupt. It does not necessarily mean that creditors can directly take the partners' personal assets to settle the debts of the partnership.
Find out more on partnerships at https://brainly.com/question/9244934
#SPJ4
4. Lady Gaga Co. recently made an investment in the bonds issued by Chili Peppers Inc. Lady Gaga's business model for this investment is to profit from trading in response to changes in market interest rates. How should this investment e classified by Lady Gaga? Explain.?
Lady Gaga Co.'s recent investment in bonds issued by Chili Peppers Inc. should be classified as trading securities as it is in the business model for profit-making via trading, responding to market interest rate changes.
Trading securities are securities that are purchased and held for the purpose of generating short-term gains by selling them as market conditions fluctuate. Trading securities can be any of the following: stocks, bonds, or other debt or equity securities, such as futures, options, or warrants.
The investment made by Lady Gaga Co. in the bonds issued by Chili Peppers Inc. should be classified as a trading security. Trading securities are financial assets that have been purchased with the aim of generating a profit through short-term trading activity.
The investment is classified as such because the company has made it with the intention of profiting from trading in response to changes in market interest rates.
The main goal of Lady Gaga Co. here is to earn a short-term profit. The company will do so by selling the bonds as market interest rates fluctuate. In this case, Lady Gaga Co.'s investment is considered a trading security.
To know more about financial assets click on below link:
https://brainly.com/question/28498359#
#SPJ11
portfolio a has an average return of 12 percent, a standard deviation of 17.2 percent, and a beta of 0.8. portfolio b has an average return of 7.8 percent, a standard deviation of 6.4 percent, and a beta of 1.32. the risk-free rate is 1.5 percent and the market risk premium is 8.5 percent. what is the treynor ratio of a portfolio comprised of 30 percent portfolio a and 70 percent portfolio b? a. 0.082 b. 0.050 c. 0.065 d. 0.078 e. 0.136
The Treynor ratio is the performance metric that measures returns in excess of the risk-free rate divided by the portfolio's beta.
The main answer is option A, 0.082.
In this question, we need to calculate the Treynor ratio of a portfolio made up of 30% Portfolio A and 70% Portfolio B.Given,Portfolio A has an average return of 12% with a standard deviation of 17.2% and a beta of 0.8.Portfolio B has an average return of 7.8% with a standard deviation of 6.4% and a beta of 1.32.The risk-free rate is 1.5% and the market risk premium is 8.5%.The formula for the Treynor ratio is as follows:
Treynor Ratio = (Portfolio Return - Risk-Free Rate) / BetaPortfolio Return = (Weight of Portfolio A × Return of Portfolio A) + (Weight of Portfolio B × Return of Portfolio B)
= (0.3 × 12%) + (0.7 × 7.8%) = 2.34% + 5.46%
= 7.8%Beta of Portfolio
= (Weight of Portfolio A × Beta of Portfolio A) + (Weight of Portfolio B × Beta of Portfolio B)
= (0.3 × 0.8) + (0.7 × 1.32)
= 0.696Treynor Ratio
= (7.8% - 1.5%) / 0.696
≈ 0.082
To know more about rate visit:
https://brainly.com/question/25565101
#SPJ11
Bubs Australia is a public listed company in ASX. It is considering issuing ordinary shares to raise capital. a) Bubs Australia has a Beta of 1.2. The long-term return of the ASX200 (i.e. the market portfolio) is 8% per annum, and the market risk premium is 5%. Without calculation, use the meaning of Beta to explain if Bubs Australia's expected rate of return would be higher or lower than the market portfolio return?
Answer : Bubs Australia's expected rate of return would be higher than the market portfolio return due to its beta value of 1.2.
Explanation : Beta is a measure of systematic risk. The measure is used to estimate how an asset moves relative to the market. Assets with a beta of less than 1 are regarded as less risky than the market, whereas those with a beta of more than 1 are seen as riskier than the market.
Bubs Australia, a publicly traded firm on the ASX, has a beta of 1.2.If the long-term return of the market portfolio is 8% per year, and the market risk premium is 5%, Beta may be used to explain whether Bubs Australia's expected rate of return will be greater or less than the market portfolio return.
Beta values greater than 1.0 indicate that a company's stock is more volatile than the market, while beta values less than 1.0 indicate that the stock is less volatile than the market.
As a result, Bubs Australia's expected rate of return would be higher than the market portfolio return due to its beta value of 1.2.
Learn more about Beta here https://brainly.in/question/19783860
#SPJ11
An annuity pays $1200 per year for 15 years. The money is invested at 5.2%, compounded annually. The first payment is made one year after the purchase of the annuity. Determine the interest earned by the annuity over 15 years.
The amount of interest earned by the annuity over 15 years is $9502.16. That an annuity pays $1200 per year for 15 years, the money is invested at 5.2% compounded annually, and the first payment is made one year after the purchase of the annuity.
The interest earned by the annuity over 15 years, we can use the formula for the future value of an annuity due:FVAD = PMT x [(1 + i) x ((1 + i)^n - 1) / i]where, FVAD is the future value of an annuity due; PMT is the payment made per period; i is the interest rate per period; and n is the number of periods.
To find the interest earned, we can subtract the total amount paid (15 x $1200 = $18000) from the future value of the annuity due. Hence, we need to find the future value of the annuity due using the given values. Substituting the values, we get:FVAD = $1200 x [(1 + 0.052) x ((1 + 0.052)^15 - 1) / 0.052]= $1200 x [(1.052) x (4.467 - 1) / 0.052]= $1200 x 68.952= $82742.4The future value of the annuity due is $82742.4.The total amount paid over 15 years is $18000.The interest earned by the annuity over 15 years is the difference between the future value of the annuity due and the total amount paid, i.e.,$82742.4 - $18000= $64742.4.
To know more about payment visit:
https://brainly.com/question/32320091
#SPJ11
You presented the importance of brand equity to your organization and analyzed the implications of reopening the park. Your presentation was well received by the company management.
Now, it's time take a step toward developing the strategic marketing plan for the reopening of the park. As a regional director of marketing, it is essential for you to know how you are going to apply various marketing principles and theories to design an effective and relevant marketing plan for the reopening of the park. This includes various aspects such as understanding the target audience; identifying the right and relevant marketing methods to communicate with target audience; using product, place, price, and promotional strategies to attract the target audience; and so on.
You have been provided with the following target audiences:
- Primary Market: Families with children (ages 6–18) with an average annual family income of over $75,000 per year
- Secondary Market: Teens, ages 15–18
Write a memo to your CMO detailing how you will use the four Ps in your marketing efforts.
The considerations should be such that customer and business perspectives are well balanced. The company is open to ideas showing creativity and innovation but does not want to reinvent the wheel completely.
Prompt
Refer to the CMO Memo for Target Audience and create a consulting report describing how the four Ps can be used to attract existing and new customers back to the U.S. Park Southeast when it reopens.
For the purposes of this assignment, you will include the following in your consulting report.
1. Describe the plan to market the product to the identified target audiences.
- What communication strategy will you use for the target audiences, regarding the park services?
2. Describe the role of place in attracting customers back into the park.
- Identify the appropriate communication method to share information about the safety measures you have taken.
- How will you plan a marketing campaign around "convenience of use" as your unique selling proposition (USP)?
3. Determine the pricing strategy that should be considered to drive new and existing customers.
- How will you communicate the value of your offering through an effective pricing model?
4. Describe two promotional events aimed at your two target audiences designed to drive attendance.
- Include one promotional event for each of the two target audiences. This element requires you to use your own creativity or previous exposure to promotional events.
Memo to Chief Marketing Officer:
Subject: Strategic Marketing Plan for Reopening of U.S. Park Southeast
Dear CMO,
I am excited to present our strategic marketing plan for the reopening of U.S. Park Southeast. With the target audiences of families with children (ages 6-18) as the primary market and teens (ages 15-18) as the secondary market, our plan aims to attract existing and new customers while balancing customer and business perspectives. Here's how we will utilize the four Ps to achieve our goals:
1. Product: To market the park to families and teens, we will emphasize its unique offerings and experiences. For families, our communication strategy will focus on the park's family-friendly attractions, educational programs, and entertainment options suitable for children of various age groups. For teens, we will highlight thrilling rides, interactive experiences, and events tailored to their preferences.
2. Place: To attract customers back to the park, we will leverage various communication methods. We will employ a multi-channel approach, utilizing social media platforms, targeted online advertisements, and email newsletters to reach our target audiences. In sharing information about the safety measures, we will use a combination of digital channels, including the park's website, social media, and mobile apps. This will ensure that customers are well-informed and confident about visiting the park.
To promote the "convenience of use" as our USP, we will focus on creating seamless and hassle-free experiences. We will invest in user-friendly mobile apps for ticket purchasing, ride reservations, and food ordering. Additionally, we will implement RFID wristbands for quick access to rides and attractions, minimizing wait times and enhancing convenience.
3. Price: Our pricing strategy will aim to provide value while considering profitability. We will offer flexible ticket options, such as family packages and discounted rates for advance online bookings, to attract families. For teens, we will introduce special pricing for group visits and exclusive events. To communicate the value of our offering, we will emphasize the quality and variety of attractions, personalized experiences, and the overall enjoyment and memories that visitors can create.
4. Promotion: We will organize two promotional events targeting our primary and secondary markets. For families, we will host a Family Fun Day, featuring special discounts, character meet-and-greets, and interactive activities for children. This event will be heavily promoted through targeted advertisements, collaborations with local family-oriented businesses, and social media campaigns.
For teens, we will organize an exclusive Teen Night event, offering extended park hours, live music performances, and themed activities. To promote this event, we will leverage partnerships with popular teen influencers, use targeted online advertisements on platforms frequented by teens, and engage with local schools and youth organizations.
By implementing these strategies, we aim to create awareness, generate excitement, and drive attendance from both target audiences. We are confident that this marketing plan will effectively position U.S. Park Southeast as a premier destination for families and teens alike.
Thank you for your attention, and we look forward to the successful reopening of U.S. Park Southeast.
Sincerely,
[Your Name]
Regional Director of Marketing
For more such questions on Marketing, click on:
https://brainly.com/question/25369230
#SPJ11
1. Italy’s strength in leather bags and shoes has drawn from the strength of Italy’s leather industry. This is an example of ______________ which impacts national competitiveness.
A) Factor endowments
B) Intensity of rivalry of an industry
C) Local demand conditions
D) Competitiveness of related and supporting industries
Italy’s strength in leather bags and shoes has drawn from the strength of Italy’s leather industry. This is an example of factor endowments which impacts national competitiveness. Therefore, the correct option is:
A) Factor endowments
Factor endowments are the resources accessible to an economy such as land, capital, labor, and entrepreneurship. The existence and productivity of these factors, combined with other socio-economic factors, influence a nation's competitiveness. In Italy, the strength of their leather industry has enabled them to produce high-quality leather bags and shoes, making them more competitive on the world market.
The main factors of production are typically categorized into four types:
1. Land: This includes natural resources such as minerals, water, forests, and agricultural land. The availability and quality of land resources in a country can influence its agricultural productivity, mining industry, and overall economic development
2. Labor: Labor refers to the workforce or human capital available in a country. It encompasses the quantity, skills, education, and productivity of the labor force. Factors such as population size, demographics, and educational attainment levels determine the labor endowment of a nation
3. Capital: Capital represents the physical and financial assets that are used in the production process, such as machinery, equipment, infrastructure, and financial resources. The level of investment, access to credit, and technological advancements contribute to a country's capital endowment
4. Entrepreneurship: Entrepreneurship refers to the ability and willingness of individuals to take risks, innovate, and organize resources in order to start and manage businesses. The presence of a vibrant entrepreneurial culture, access to entrepreneurial networks, and supportive institutional frameworks influence a country's entrepreneurial endowment.
To know more about Factor Endowments Theory, visit the link : https://brainly.com/question/32568360
#SPJ11
Which of the following formulas describes the calculation of cash flow from operating activities?
a. Net income + Noncash items +/− Changes in current assets and liabilities
b. Net income + Capital expenditures − Dividends paid
c. Net income − Capital expenditures − Dividends paid
d. Net income +/− Changes in current assets and liabilities − Dividends paid
e. Net income + Noncash items − Capital expenditures
The correct formula which describes the calculation of cash flow from operating activities is given by the option d. Net income +/− Changes in current assets and liabilities − Dividends paid.
Cash flow refers to the movement of money into and out of a business or individual's accounts over a specific period of time. It represents the net amount of cash generated or consumed by a business during a given period, typically a month, quarter, or year.
Positive cash flow occurs when the inflows of cash exceed the outflows, resulting in an increase in the available cash balance. This is generally considered a healthy sign for a business, as it indicates the ability to meet financial obligations, invest in growth opportunities, and build reserves.
Negative cash flow, on the other hand, occurs when the outflows of cash exceed the inflows, resulting in a decrease in the available cash balance. This can be a cause for concern, as it may indicate a financial strain, inability to pay bills or debts, and limited capacity for investment or expansion.
To learn more about cash flows visit-
https://brainly.com/question/10922478
#SPJ11
WACC
The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,167. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Paulson's WACC using market-value weights.
Assets
Cash $120
Accounts Receivable 240
Inventories 360
Plant and equipment, net 2,160
Total assets $2,880
Liabilities and Equity
Accounts Payable and accruals $10
Short-term debt 47
Long-term debt 1,120
Common Equity 1,703
Total liabilities and equity $2,880
The WACC of Paulson Company using market-value weights is 9.35%. The Weighted Average Cost of Capital (WACC) is a calculation of a company's expense of capital in which each category of capital is weighed proportionately.
The cost of all forms of financing, including common stock, preferred stock, bonds, and other long-term debt, are combined in the WACC equation to determine a firm's overall expense of capital.
The formula for WACC is as follows:
WACC = ((E/V) * Re) + [((D/V) * Rd) * (1 - Tc))]
Where:
Re = Cost of equity
Rd = Cost of debt
E = Market value of the company's equity
D = Market value of the company's debt
V = E + D- E = Market value of the company's equity
D = Market value of the company's debt
Tc = Corporate tax rate
Let's calculate the WACC of Paulson Company using market-value weights:
Step 1: Calculate the market value of the company's equity
E = Shares outstanding * Market price per share
= 576 * $4
= $2,304
Step 2: Calculate the market value of the company's total debt
D = Short-term debt + Long-term debt
= $47 + $1,120
= $1,167
Step 3: Calculate the proportion of the equity market value to the total capital structure (equity + debt)
Market value of equity proportion (E/V) = E / (E + D)
= $2,304 / ($2,304 + $1,167)
= 0.6644 or 66.44%
Step 4: Calculate the proportion of the debt market value to the total capital structure (equity + debt)Market value of debt proportion
(D/V) = D / (E + D)
= $1,167 / ($2,304 + $1,167)
= 0.3356 or 33.56%
Step 5: Calculate the before-tax cost of debt Rd
= 10%
Step 6: Calculate the cost of equity Re
= 14%
Step 7: Calculate the tax rateTc = 40%
Step 8: Insert the data into the WACC equation
WACC = ((E/V) * Re) + [((D/V) * Rd) * (1 - Tc))]WACC
= [(0.6644 * 0.14) + (0.3356 * 0.1 * (1 - 0.4))]WACC
= 0.0935 or 9.35%
Therefore, the WACC of Paulson Company using market-value weights is 9.35%.
To know more about Weighted Average Cost of Capital refer to:
https://brainly.com/question/28042295
#SPJ11
1. What are cultural landscapes?
2. Are you a Digital Native?
3. What does McLuhan mean with the term global village?
4. What is the term digital divide referring to?
1. Cultural landscapes are environments shaped by human activities and carry cultural, historical, and social significance; 2. yes; 3. "global village" refers to a connected world where electronic communication technologies enable instant information flow and a sense of global interconnectedness and 4. "digital divide" refers to the social and economic gap between those who have access to digital technologies and those who don't, limiting their participation in the digital age.
Here are the answers in detail:
1. Cultural landscapes refer to the interactions between humans and the environment. It is a way of describing the relationship between people and the land, and how it has changed over time. Cultural landscapes can be natural or man-made, and they reflect the customs, beliefs, and practices of different cultures. They are often used to create a sense of identity and community.
2. Yes, I am digital native. Digital natives are people who were born into a world where digital technology is a central part of everyday life. They are comfortable using technology, and they often prefer to communicate and learn through digital media.
3. McLuhan's global village is a metaphor for the way that the world has become more interconnected through technology. He believed that electronic media, such as television and the internet, would bring people together and create a sense of global community. McLuhan thought that these media would create a sense of shared experience and a new way of understanding the world.
4. The term digital divide refers to the gap between people who have access to digital technology and those who do not. This divide can be seen in terms of economic, social, and cultural factors. People who live in rural areas, low-income families, and older people are less likely to have access to digital technology. This can lead to unequal opportunities for education, employment, and social engagement.
Learn more about McLuhan at:
https://brainly.com/question/29797995
#SPJ11
Comment on the cash flow management of Bharat Electronics fron figures. (Rs/Crs) Particulars Mar-20 Mar-19 Mar-18 Mar-17 Operating Activities 2,570 1,546 -686 -60 Investing Activities -648 _928 3,114 Financing Activities -1,060 -662 -1,202 -2,856 Others 0 0 0 O Net Cash Flow 860 -44 -1.895 196
The cash flow management of Bharat Electronics has been relatively stable, with positive operating cash flows and varying financing and investing activities.
How did we arrive at this assertion?Based on the provided figures for Bharat Electronics' cash flow management in crores of rupees, here are some observations:
1. Operating Activities: Bharat Electronics' operating cash flow has shown consistent growth over the years. From a positive cash flow of 1,546 crores in 2019, it increased to 2,570 crores in 2020. This indicates that the company's core operations generated more cash during this period.
2. Investing Activities: In 2020, the company had a negative cash flow of 648 crores from investing activities, which indicates that it made significant capital expenditures or investments during that period. In the previous year (2019), it had a positive cash flow of 928 crores from investing activities, suggesting that the company might have divested or received proceeds from investments.
3. Financing Activities: The financing activities of Bharat Electronics have varied over the years. In 2020, it had a negative cash flow of 1,060 crores, indicating that the company paid off debt or repurchased shares. In contrast, in 2017, it had a negative cash flow of 2,856 crores, suggesting significant debt repayment or capital raising activities.
4. Other Activities: The figures provided do not show any cash flow from other activities, which suggests that there were no significant cash flows from non-operational or extraordinary items during the specified years.
5. Net Cash Flow: The net cash flow represents the overall cash inflow or outflow for the company during a particular period. In 2020, Bharat Electronics had a positive net cash flow of 860 crores, indicating an overall increase in cash. However, in 2019 and 2018, it had negative net cash flows of -44 crores and -1,895 crores, respectively. In 2017, the company had a positive net cash flow of 196 crores.
Therefore, the cash flow management of Bharat Electronics has been relatively stable, with positive operating cash flows and varying financing and investing activities. It is essential to consider additional financial information and context to make a more comprehensive analysis of the company's cash flow performance.
learn more about cash flow: https://brainly.com/question/735261
#SPJ4
suppose the unemployment rate is very low. how does the low unemployment rate change the relative bargaining power of workers and firms? what do your answers imply about what happens to the wage as the unemployment rate gets very low?
A low unemployment rate increases the relative bargaining power of workers, potentially leading to higher wages.
When the unemployment rate is very low, it typically indicates a tight labor market where there are fewer job seekers compared to available job openings. In such a scenario, workers have more employment options, and their bargaining power increases relative to firms.
With a lower supply of available workers, firms may find it more challenging to attract and retain skilled employees. Workers, on the other hand, have increased leverage to negotiate better wages, benefits, and working conditions.
They may have the ability to be more selective in choosing job opportunities, demand higher salaries, seek improved job security, and request additional perks.
The relative bargaining power of workers in a low unemployment environment can result in upward pressure on wages. Firms may need to offer competitive compensation packages to attract and retain talented workers, as the competition for labor intensifies.
This can lead to wage increases above inflation rates, as firms strive to secure the workforce they need to meet their production or service demands.
However, it is important to note that the impact of a low unemployment rate on wages may vary depending on other factors, such as industry dynamics, labor market regulations, and overall economic conditions.
Additionally, the relationship between unemployment rates and wages is complex, and there can be other factors at play, such as productivity levels, inflationary pressures, and the bargaining power of specific industries or occupations.
In summary, a low unemployment rate generally strengthens the bargaining power of workers, potentially leading to higher wages as firms compete for talent in a tight labor market.
For more question on unemployment visit:
https://brainly.com/question/30403878
#SPJ8
This chapter discusses the distinguishing features of state and local governments, the federal government, not-for- profit organizations, and businesses. Recall from your reading that there are separate standard-setting entities for state and local governments (Governmental Accounting Standards Board) and the federal government (Federal Accounting Standards Advisory Board). However, the accounting standards for not-for-profit-organizations and business are established by the Financial Accounting Standards Board. Consider the accounting standard arrangements and address the following questions:
1. How can you support the standard-setting arrangements?
2. Are the characteristics of state and local governments similar enough to the federal government to justify having the same standard-setter?
3. Are the characteristics of non-profit organizations similar enough to state and local government to justify having the same standard-setter?
1.The standard-setting arrangements in accounting serve the purpose of establishing consistent and comparable financial reporting frameworks for different types of entities
2. Standard-setters allows for a more tailored approach to accounting standards that considers the specific requirements and characteristics of each government sector.
3. The development of accounting standards that reflect the unique nature of each sector and provide relevant guidance for financial reporting and accountability.
1. The standard-setting arrangements in accounting serve the purpose of establishing consistent and comparable financial reporting frameworks for different types of entities. They provide guidance and rules for preparing financial statements, disclosing information, and measuring performance. The support for standard-setting arrangements lies in the need for transparency, comparability, and accountability in financial reporting, which benefits users of financial statements such as investors, creditors, and other stakeholders.
2. While there may be similarities between state and local governments and the federal government in terms of some accounting issues, such as budgeting, financial reporting, and revenue recognition, there are also significant differences in their operations, funding sources, and legal frameworks. These differences may warrant separate standard-setting arrangements for state and local governments and the federal government to address their unique needs and complexities. Having separate standard-setters allows for a more tailored approach to accounting standards that considers the specific requirements and characteristics of each government sector.
3. Non-profit organizations and state and local governments share certain characteristics, such as a focus on public service and accountability to stakeholders. However, there are also distinct differences in their objectives, funding sources, and legal requirements. Non-profit organizations often rely on donations, grants, and contributions, while state and local governments generate revenue through taxes and fees. Therefore, it may be appropriate to have separate standard-setting arrangements for non-profit organizations and state and local governments to address their specific accounting and reporting needs. This allows for the development of accounting standards that reflect the unique nature of each sector and provide relevant guidance for financial reporting and accountability.
To know more about standard-setting arrangements click here :
https://brainly.com/question/31903436
#SPJ4
Selective perception Misperception Filtering
Information overload Organizational barrier Cultural barrier
Noise Because you were in a hurry when you typed the email message you were very brief and the message came across as rude to your coworker even though you did not intend for it to.
Rather than just saying, "no" as most people in the United States do, the Japanese tend to say "that could be difficult" instead.
Animation company Pixar has only one set of bathrooms in its entire building to force communication and interaction among employees.
The examples provided can be categorized as follows: Selective perception: When you were in a hurry and typed a brief email, your coworker perceived it as rude due to their selective perception of the message.
Filtering: The process of filtering refers to intentionally withholding or manipulating information. There is no specific example related to filtering in the given statements.
Misperception: Your coworker's misperception of your email message as rude, despite your lack of intention to be rude, is an example of misperception.
Information overload: There is no specific example related to information overload in the given statements.
Organizational barrier: There is no specific example related to organizational barriers in the given statements.
Cultural barrier: The difference in communication styles between the United States and Japan, where the Japanese tend to use indirect phrases like "that could be difficult" instead of a straightforward "no," represents a cultural barrier.
Noise: Noise refers to any interference or distortion that affects the communication process. There is no specific example related to noise in the given statements.
In summary, the examples provided align with selective perception, misperception, cultural barrier, and the absence of specific examples related to filtering, information overload, organizational barriers, and noise.
To know more about coworker click here:-
https://brainly.com/question/27404382
#SPJ4
three packages of pens and one box of paper cost $26. two packages of pens and 7 boxes of paper cost $49. how much does one box of paper cost? question 7 options: a) $7.00 b) $5.00 c) $12.00 d) $4.00
Based on the above, one box of paper costs $5.00.
What are the packages?Let us make the cost of one package of pens is P and the cost of one box of paper is B.
From the given question, one need to set up the following system of equations:
Equation 1: 3P + B = 26 (Three packages of pens and one box of paper cost $26)Equation 2: 2P + 7B = 49 (Two packages of pens and seven boxes of paper cost $49)To handle this system of equations, we can use the method of substitution or elimination. So:
Multiply Equation 1 by 2: 6P + 2B = 52
Multiply Equation 2 by 3: 6P + 21B = 147
Also , subtract Equation 1 from Equation 2:
(6P + 21B) - (6P + 2B) = 147 - 52
19B = 95
Then Divide both sides by 19:
B = 95 / 19
B = 5
So , one box of paper costs $5.00.
Learn more about packages from
https://brainly.com/question/27118899
#SPJ4
9. Answer ALL parts of this question. Consider a standard Hecksher-Ohlin world, with the following endowment of production factors: Home Foreign Labour 77 45 20 Capital 15 10 There are two goods: Computers (C), which are capital intensive, and T-shirts (T), which are labour intensive. (a) Based on the table above, what are the expected patterns of trade in this world and why? (b) In this example, who would gain from opening up to free trade and who would lose, and why? (c) Suppose that the relative price of computers is fixed at Pc/PT and there is a sudden increase in the available labour in Home. What will happen to the production possibility frontier and Home's production of Computers and T-shirts. Explain your answer and illustrate with a relevant diagram. (d) Some countries are not very abundant in any resource. Does this mean that we would expect them to export nothing? Explain your answer by using the Hecksher-Ohlin model. (e) Give an example of where equalisation of wage rate has not occurred. Discuss some possible explanations for this.
a) Based on the given table, this economy has a relative abundance of labor compared to capital. This means that it would produce T-shirts cheaply since it is labor-intensive.
On the other hand, computers are capital-intensive, meaning that it is cheaper to produce in countries with a higher capital endowment. Therefore, this economy is expected to export T-shirts and import computers.
b) In this example, the free trade opening would benefit the consumers of both products since they would get them at a cheaper price. The domestic producer of T-shirts will lose since it has to compete with foreign producers who can produce at a lower cost.
The domestic producer of computers would benefit since the product is more expensive to produce in other countries.
c) With the relative price of computer fixed at Pc/PT, an increase in the available labor in Home would result in a shift in the production possibility frontier (PPF) outwards.
The new frontier is shown in the diagram below. The country's production of both goods will increase, but the increase in computer production is relatively larger since it is more capital-intensive.
d) The Hecksher-Ohlin theorem holds that a country's exports are determined by the factor endowments. However, a country can still export a good even if it is not relatively abundant in any resource if the good is produced using the resource that is most abundant in the country.
For example, a country that is not abundant in labor may still produce and export a labor-intensive good that uses the country's abundant capital.
e) One example of where equalization of wage rate has not occurred is between developed and developing countries. Despite the factor endowments and the Heckscher-Ohlin theorem, there is still a wage gap between developed and developing countries. This could be explained by other factors such as institutional quality, technological difference, and government policies. Additionally, there could be barriers to trade that prevent factors from moving from low wage to high wage countries.
To know more about labor-intensive visit:
https://brainly.com/question/32273746
#SPJ11
7
Berg Company has fixed costs of $194,274. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per
The break-even point for Berg Company is approximately 377 units of X and 151 units of Y.
To determine the break-even point in units of X and Y for Berg Company, we need to find the point at which the company's total contribution margin covers its fixed costs.
Let's calculate the contribution margin per unit for each product:
Product X:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
= $1,104 - $414
= $690
Product Y:
Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit
= $473 - $220
= $253
Next, we need to calculate the weighted average contribution margin per unit based on the sales mix. The sales mix for X and Y is given as 60% and 40%, respectively.
Weighted Average Contribution Margin per Unit = (Contribution Margin per Unit X * Sales Mix X) + (Contribution Margin per Unit Y * Sales Mix Y)
= ($690 * 0.6) + ($253 * 0.4)
= $414 + $101.2
= $515.2
Now we can calculate the break-even point in units of X and Y:
Break-even Point in Units of X = Fixed Costs / Weighted Average Contribution Margin per Unit
= $194,274 / $515.2
≈ 377 units (rounded to the nearest whole number)
Break-even Point in Units of Y = Break-even Point in Units of X * Sales Mix Y
= 377 units * 0.4
= 150.8 units (rounded to the nearest whole number)
Therefore, the break-even point for Berg Company is approximately 377 units of X and 151 units of Y.
To learn more about the break-even point
https://brainly.com/question/21137380
#SPJ11
Complete question:
Berg Company has fixed costs of $194,274. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,104 $414 253 $690 220 Y 473 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units of X units of Y