You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .95, 1.12, 1.13, and 1.30, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer 1

Answer:

Portfolio beta = 1.1075

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,

Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

w represents the weight of each stock in portfolio

Portfolio beta = 0.30 * 0.95  +  0.25 * 1.12  +  0.25 * 1.13  +  0.20 * 1.30

Portfolio beta = 1.1075


Related Questions

Which of the following is not a reason for a direct materials quantity variance? a.purchasing of inferior raw materials

Answers

Answer: d. increased material cost per unit

Explanation:

Direct materials quantity variance has to do with the difference between the budgeted quantity of materials and the actual quantity of materials used. It speaks to only the quantity used and nothing else.

An increased cost of the material is not relevant to the quantity of material used because whilst for instance it measures if there was a price change in the material, the materials quantity variance checks if there has been a change in quantity.

A firm hires labor in a perfectly competitive labor market. Its current profit-maximizing hourly output is 100 units, which the firm sells at a price of $5 per unit. The Marginal Physical product (MPP) of the last unit of labor employed is 5 units per hour. The firm pays each worker an hourly wage of $15. a)What Marginal Revenue (MR) does the firm earn from sale of the output produced by the last worker employed? b)Does this firm sell its output in a perfectly competitive market?

Answers

Answer:

A.Marginal Revenue $3

B. No

Explanation:

A.Calculation for the Marginal Revenue (MR) that the firm earn from sale of the output produced by the last worker employed

Based on the information given we were told that the Marginal Physical product of the last unit of labor was 5 units per hour in which the firm pays each worker an hourly wage of $15. Now let calculate the Marginal Revenue using this formula

Marginal Revenue = Employees hourly wages/Marginal Physical product unit of labor

Where,

Employees hourly wages=$15

Marginal Physical product unit of labor =5 units per hour

Let plug in the formula

Marginal Revenue =$15/5

Marginal Revenue =$3

B. No reason been that the current profit-maximizing hourly output was 100 units in which we were told that the firm sells at a price of $5 per unit. While the Marginal Revenue gotten in (A) above was $3 which is lesser or lower than $5 per unit which simply means that the firm does NOT sell its output in a well perfectly competitive market .

Stephenson Co.'s 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is correct?
A. The bond's coupon rate exceeds its current yield.
B. The bond's yield to maturity is greater than its coupon rate.
C. If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850.
D. The bonds current yield exceeds its yield to maturity.

Answers

Answer:

The bond's yield to maturity is greater than its coupon rate.

Explanation:

At a discount, the price of the bond is less than its face value, from bond theory principles, this is likely to happen when YTM is more than the coupon rate of the bond. Due to this the present value of the coupons and their face value are going to be lower than 1000 since YTM is greater.

The coupon rate is given as annual interest divided by face value

While

The yield is interest/ current price.

The answer to the question is therefore

The bond's yield to maturity is greater than its coupon rate.

Charlie is a strategist who wants to decide on the appropriate strategy to help his firm "go global." Which of the following should Charlie consider while choosing his strategy?A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.B) He should rely on his firm's business-level strategy as a clue to possible strategies pursued globally.C) He should remember that he has only one framework at his disposal to make global strategy decisions.D) He must remember that higher levels of control and a lower likelihood of any loss in reputation go along with less investment-intensive foreign entry modes.

Answers

Answer: A) He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.

Explanation:

Charlie must consider that despite the fact that the internet and technology have made globalization more accessible, the location of a business remains very important hence the old saying "its all about location location location".

The firm's geographical location has an effect on stakeholders in the company such as customers, employees and suppliers. For the customers, even if the business was to rely on the internet and delivering goods, the location needs to be convenient enough to ship goods from.

The Suppliers as well need to be able to send the goods ordered for in a timely fashion and an improper location can hamper that. Even employees need a place to work in that is conducive for them in terms of logistics and a safe working environment. Charlie should definitely not forget about the importance of location.

A local restaurant increases the prices on its burgers as soon as it begins a promotional campaign. Which of the following is most likely to be true?
a) The promotional campaign featured how much better their burgers are.
b) The promotional campaign focused on the value per dollar.
c) The promotional campaign made demand more elastic.
d) All of the above.

Answers

Answer: The promotional campaign featured how much better their burgers are

Explanation:

The most likely reason why a local restaurant will increase the prices on its burgers as soon as it begins a promotional campaign is that the promotional campaign featured how much better their burgers are.

Through the promotional campaign, the message has been passed to the customers and anyone interested that the burgers are better and customers will enjoy value for their money.

Sam has contracted with Dave to purchase Dave's racing bike, with payment and delivery of the bicycle to be made 10 days after the contract was made. Three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price. If Sam really wants the bike, what should he do? Multiple Choice Immediately seek injunctive relief. Immediately sue for specific performance. Immediately sue for compensatory damages. Immediately sue for consequential damages.

Answers

Answer: Immediately seek injunctive relief.

Explanation:

An injunctive relief is an order by the court stopping an action from taking place. From the question, we are told that Sam has contracted with Dave to buy Dave's racing bike, with payment and delivery of the bicycle to be made 10 days after the contract was made.

We are further told that three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price. If Sam really wants the bike, he should seek injunctive relief. By doing so, the court will stop Dave from selling the bike to Gene.

Which of the following goals of a performance evaluation system is accomplished when the company's actual results are compared to industry standards?
A) Benchmarking
B) Motivating unit managers
C) Promoting goal congruence
D) Providing feedback

Answers

Answer:

A) Benchmarking

Explanation:

Benchmarking refers to a process in which the performance of the company could be measured with respect to the product, services, processes as compared with the industry performance

Here in the given situation, when an actual result is compared with the industry standards than we called as a benchmarking and the same is to be used for the evaluation of the performance system

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of​ $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of ​%. If the manufacturer currently makes tons of clothespins per​ year, which sell at per​ ton, what will be the increase in revenue next year from the new​ equipment?

Answers

Answer:

$337,500

Explanation:

the questions was missing some numbers. I looked for similar questions and found:

increase in sales = 25​%current annual production in tons = 75sales price per ton = $18,000

increase in total sales = 75 tons x 25% = 18.75 tons

increase in revenue = 18.75 tons x $18,000 = $337,500

Since the question only asks for the increase in revenue, we do not have to calculate anything else.

Terry Dactel is considering the purchase of an asset having the following cash flows (in 000's):CF Prob.5 20%12 30%18 30%20 20%What is the asset’s standard deviation (in 000's)?

Answers

Answer: b. $5.4

Explanation:

First calculate the Expected return;

Expected cashflow = ∑ (Probability of cashflow * cashflow)

Expected cashflow = (5 * 0.2) + (12*0.3) + (18*0.3) +(20*0.2)

=$14

Standard deviation = √∑ [Probability * (CF - Expected CF)^2]

Standard deviation= √[(0.2*(5 - 14)^2) + (0.3*(12-14)^2) + (0.3*(18-14)^2) + (0.2*(20-14)^2)

Standard deviation = $5.4

Looking forward to next year, if Baldwin’s current cash balance is $20,201 (000) and cash flows from operations next period are unchanged from this period and Baldwin takes ONLY the following actions relating to cash flows from investing and financing activities: Issues 100 (000) shares of stock at the current stock price Issues $200 (000) of long-term debt Pays $40 (000) in dividends Which of the following activities will expose Baldwin to the most risk of needing an emergency loan?a. Retires $20,000 (000) in long-term debtb. Liquidates the entire inventoryc. Sells $5,000 (000) of their Long-term assetsd. Purchases assets at a cost of $15,000 (000)

Answers

Answer: Purchases assets at a cost of $15,000 (000)

Explanation:

Out of the 4 options presented, 2 involves cash coming into the company which are; Sells $5,000 (000) of their Long-term assets and Liquidates the entire inventory. As these 2 bring cash into the company, they will not make Baldwin need an emergency loan.

The other 2 however, take money from the company being; Retires $20,000 (000) in long-term debt and Purchases assets at a cost of $15,000 (000). Retirement of long-term debt will have been in the budget for a long time so there would be no need for emergency funding.

The Purchase of the assets on the other hand has a less chance of being budgeted for than the long term debt retirement and being such a significant outflow, could expose Baldwin to the risk of needing to seek emergency loans.

The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares sold. The initial offering price was $17.50 per share, and the stock rose to $19.40 per share in the first few minutes of trading. Raven paid $860,000 in direct legal and other costs and $330,000 in indirect costs.What was the flotation cost as a percentage of funds raised?

Answers

Answer:

22.38%

Explanation:

Raven corporation has just gone public

They received $15.90 for each 25 million shares that was sold

The first step is to calculate the net amount raised

Net amount that was raised= 15.90×25,000,000 = 397,500,000

397,500,000-860,000-330,000

= 396,310,000

Underwriter spread= 17.50-15.90

= 1.6 per shares

Total underwriter spread= per share spread× number of shares that were offered

= 1.6×25,000,000

= 40,000,000

Total direct costs= 40,000,000+860,000

=40,860,000

Indirect flotation cost= indirect cost+price appreciation

= 330,000+(19.40-17.50)×25,000,000

= 330,000+1.9×25,000,000

=330,000+47,500,000

= 47,830,000

Total flotation cost= 47,830,000+40,860,000

= 88,690,000

Therefore, the flotation cost as a percentage of funds raised can be calculated as follows

= 88,690,000/396,310,000 × 100

= 0.2238×100

= 22.38%

Hence the flotation costs as a percentage of funds raised is 22.38%

A regulated Natural Monopoly is more likely to advertise freely under which of the following types of regulation?
a) price regulation
b) profit regulation
c) output regulation
d) social regulation

Answers

Answer:

A

I took the quiz

Explanation:

Using the percentageofsales ​method, the estimated total uncollectible accounts are . The Allowance for Uncollectible Accounts prior to adjustment has a debit balance of . The Accounts Receivable balance is . The amount of the adjusting entry for UncollectibleAccounts Expense​ is:

Answers

Answer:

the main part of ur question hasbeen left out so no one could help but i got a answer anyways

Explanation:

it's b

$7,322 + $2,635

= $9,957

Sometimes airlines raise ticket prices as the flight departure date approaches in the hope of increasing revenue. The airlines raise their prices on the assumption that:

Answers

Answer:

B) less price-elastic as departure time approaches.

Explanation:

Here are the options to this question :

A) steady in its price elasticity as departure time approaches.

B) less price-elastic as departure time approaches.

C) always unit elastic.

D) very sensitive to price changes as the time of departure approaches.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.  

As the departure date arrives, there would be less available flights and less time for travellers to make alternative travelling arrangements. As a result, they would be willing to pay any price. At this point, travellers would have a less elastic demand. that is they are less sensitive to price.

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Sales in Units
April 70,000
May 85,000
June 110,000
July 90,000
The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 15% of the following month’s sales. The inventory at the end of March was 10,500 units.
Required:
Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Sales in Units

April 70,000

May 85,000

June 110,000

July 90,000

Desired ending inventory= 15% of the following month’s sales.

The inventory at the end of March was 10,500 units.

To calculate the production required for each month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

April:

Sales= 70,000

Desired ending inventory= 85,000*0.15= 12,750

Beginning inventory= (10,500)

Total production= 72,250

May:

Sales= 85,000

Desired ending inventory= 110,000*0.15= 16,500

Beginning inventory= (12,750)

Total production= 88,750

June:

Sales= 110,000

Desired ending inventory= 90,000*0.15= 13,500

Beginning inventory= (16,500)

Total production= 107,000

Total quarter= 268,000

Carlos wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $750. He has only $1,537 in his checking account, so he cannot afford to purchase both. After much thought, Carlos buys the computer and writes a check for $1,299. Identify what role mo

Answers

The complete question is:

Carlos wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacation is priced at $750. He has only $1,537 in his checking account, so he cannot afford to purchase both. After much thought, Brian buys the computer and writes a check for $1,299.

Identify what role money plays in each of the following parts of the story.

Carlos can easily determine that the price of the computer is more than the price of the vacation.

Carlos has $1,537 in his checking account.

Carlos writes a check for $1,299.

Answer:

Carlos can easily determine that the price of the computer is more than the price of the vacation.= Unit of Account

Carlos has $1,537 in his checking account.= Store of value

Carlos writes a check for $1,299.= Medium of Exchange

Explanation:

In this scenario the different functions of money are exhibited. The 3 functions of money are as unit of account, store of value and medium of exchange.

When Carlos determines that the price of the computer is larger than that of price of a vacation money functions as a unit of account. The amount for a computer is $1,299 which is larger than the cost of a vacation ($750)

The money in his account is a store of value from which he can make pitches in the present or in the future.

When he writes the check for the computer, he is exchanging money for the computer. Money acts as a medium of exchange

A company incurs $4,050,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available: Department Expected use of Driver Cost Ordering and Receiving 2,000 $1,200,000 Mixing 50,000 1,500,000 Testing 1,500 1,350,000 Production information for Goo is as follows: Department Expected use of Driver Ordering and Receiving 400 Mixing 20,000 Testing 500 Compute the amount of overhead assigned to Goo. $2,760,000.

Answers

Answer:

$1,290,000

Explanation:

Goo:

Ordering and Receiving = 400 / 2,000 = 20%

Mixing = 20,000 / 50,000 = 40%

Testing = 500 / 1,500 = 33.33%

allocated overhead costs:

Ordering and Receiving = 20% x $1,200,000 = $240,000

Mixing = 40% x $1,500,000 = $600,000

Testing = 33.33% x $1,350,000 = $450,000

total allocated overhead costs = $1,290,000

Budgeted production 1,092 units Actual production 905 units Materials: Standard price per ounce $1.767 Standard ounces per completed unit 12 Actual ounces purchased and used in production 11,186 Actual price paid for materials $22,931 Labor: Standard hourly labor rate $14.92 per hour Standard hours allowed per completed unit 4.0 Actual labor hours worked 4,661 Actual total labor costs $75,741 Overhead: Actual and budgeted fixed overhead $1,189,000 Standard variable overhead rate $28.00 per standard labor hour Actual variable overhead costs $130,508 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is a.$21,730.60 favorable b.$6,199.13 unfavorable c.$21,730.60 unfavorable d.$6,199.13 favorable

Answers

Answer:

Direct labor rate variance= $6,199.13 unfavorable

Explanation:

Giving the following information:

Labor:

Standard hourly labor rate $14.92 per hour

Actual labor hours worked 4,661

Actual total labor costs $75,741

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 75,741/4,661= $16.25

Direct labor rate variance= (14.92 - 16.25)*4,661

Direct labor rate variance= $6,199.13 unfavorable

The wage rate for all units of labor is $10/hr. You have spent $160,000 on developing a production process (Process X) that will allow you to produce 8 units for every unit of labor. If you use this production process, the accounting profits will cover the initial investment within 6 months. If you use your normal production process (not Process X), you can produce 10 units for every unit of labor. Both processes are fully scalable, so the marginal product of labor is fixed for any reasonable amount of labor you could hire. Based on this information, what should you do?

Answers

Answer:

The normal production process should be followed.

Explanation:

The normal process should be used because when it uses the process “X” then the marginal productivity of labor (MPL) is 8 units and the wage of labor is $10 per hour. Secondly, when it uses a normal production process then the marginal productivity of labor is 10 units and the wage rate is the same that is $10 per hour. Therefore, the normal production process is giving the greater marginal productivity of labor, accordingly this process should be followed.

In monopolistic competition, short-run positive economic profits of firms in the market will cause the market demand to expand.
A. True
B. False

Answers

Answer:

True

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

There are low barriers to entry r exit of firms. So, if a firm is earning economic profit in the short run, in the long run, more firms would enter into the industry.

examples of monopolistic competition are restaurants  

Double West Suppliers (DWS) reported sales for the year of $400,000, all on credit. The average gross profit percentage was 35 percent on sales. Account balances follow:
Beginning Ending
Accounts receivable (net) $ 51,000 $ 61,000
Inventory 67,000 46,000
Required:
1. Compute the following turnover ratios. (Round your answers to 1 decimal place.)
2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. (Use 365 days in a year. Do not round intermediate calculations. Round turnover ratio calculation and final answers to 1 decimal place.)

Answers

Answer:

1. Accounts Receivables Turnover Ratio = Net Credit Sales/Average Accounts Receivables = 400,000 / (51000 + 61000)/2

= 400,000/56,000

= 7.1 times

Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory = (Sales-Gross Profit)/Average Inventory = (400,000 - 35% * 400,000) / (67000 + 46000)/2

=400,000 - 140,000 / 56,500

= 260,000 / 56,500

= 4.6 times

2. Average Days to Collect Receivables = 365/7.1 = 51.40 or 52 days

Average Days to Collect Inventory = 365/4.6 = 79.34 days

Question 2 options: Assume that in short-run equilibrium, a particular monopolistically competitive restaurant (Applebee's) charges $12 for each order of Chicken Parmesan and sells 52 orders per day. The average total cost (ATC) for those 52 orders is $10. Enter your answers below to the nearest whole number. How much revenue will the firm take in each day

Answers

Answer:

104

Explanation:

Which of the following items would be a way to manipulate the cash flow from operating activities amount on the statement of cash flows?

a.
Adding depreciation back to net income to determine cash flow from operating activities.

b.
Including interest expense and tax expense in the calculation of cash flow from operating activities.

c.
Recording an item that should be recorded as an operating activity as an investing activity.

d.
The cash flow statement cannot be manipulated.

Answers

Answer:

C. Recording an item that should be recorded as an operating activity as an investing activity.

Explanation:

Hope it helped

The answer to the question is c

Match the product cost variance with the manager most probably responsible. Some answers may be used more than once. Some answers may not be used.

1. Variable overhead cost variance
2. Direct matierals efficiency variance
3. Direct labor cost variance
4. Fixed overhead cost variance
5. Direct materials cost variance

CHOICES:

a. Human resources
b. Purchasing
c. Production

Answers

Answer:

1 = A

2 = C

3 = C

4 = C

5 = B

Explanation:

This would actually depend on how the organization is set up and what type of business it is, but I believe these would be the most likely centers responsible for the difference

A registered representative receives an order from a corporate issuer to buy 500,000 shares of that issuer's stock in the market, 5 minutes prior to market close. The registered representative should:

Answers

Answer: C. inform the company that this is a possible market manipulation under the Securities Exchange Act of 1934

Explanation:

The Securities Exchange Act of 1934 is meant to govern the actions of issuers and their affiliates engaging in trade in the open market. One reason for this is to prevent stock price manipulation.

SEC Act Rule 10b-18 might rule this transaction as a manipulative activity because it goes against the section of it that states that securities cannot be traded within 10 minutes of the stock market closing if that stock is an actively traded one. If it is not then the trade should not be executed within 30 minutes of market close.

The client should therefore be informed that by placing an order 5 minutes before close they could run afoul of this Act because buying such huge amounts at such a time could influence the price upwards for when the market reopens.

At the beginning of the meeting Kira does not properly lead the team during the ______ stage of team development. Therefore; the team was stuck in the ______ stage.

Answers

Answer:

forming; storming

Explanation:

The forming is the first stage in group development. At this stage, the members of the group reveal their expectations with respect to the work and share their that skils in which they are perfect so that the work could be allocated easily.

After this finishing this step, the next step is storming in which the members give their suggestions to accomplish a task that has assigned to each member of the group

Therefore as per the given situation, the forming and storming are the correct options.

Team development is the ultimate word for the teamwork or the entire growth of the firm with the team as well. The team works as a group in the firm and accomplishes the tasks within the set target in order to accomplish the organization target as well as the individual targets.  

The answer to the blanks are forming; storming

The forming is the first stage in group development. At this stage, the members of the group reveal their expectations with respect to the work and share their skills in which they are perfect so that the work could be allocated easily.

After this step, the next step is storming in which the members give their suggestions to accomplish a task that has been assigned to each member of the group

To know more about the options of the stage of team development, refer to the link below:

https://brainly.com/question/14449327

Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more typical of the average corporation and is risk-averse.
Projects Returns: Expected Value Standard Deviation
A $ 310,000 $ 173,000
B 676,000 413,000
C 163,000 120,000
D 134,000 101,000
a-1. Compute the coefficients of variation. (Round your answers to 3 decimal places.)
a-2. Which of the following four projects should Mountain Ski Corp.
A. Project B
B. Project A
C. Project C
D. Project D

Answers

Answer:

B. Project A

Explanation:

Coefficient of variation=standard deviation/expected return value

Project A:

Coefficient of variation=$173,000/$310,000= 0.558  

Project B:

Coefficient of variation=$413,000/$676,000=  0.611  

Project C:

Coefficient of variation=$120,000/$163,000=0.736

Project D:

Coefficient of variation=$101,000/$134,000=0.754

The Project A has the lowest rate of risk per unit of return, hence, it is the preferred choice of investment

Delta Importers has a pure discount loan with a face value of $180,000 due in one year. The assets of the firm are currently worth $215,000. The shareholders in this firm basically own a ________ option on the assets of the firm with a strike price of

Answers

Answer: call; $180,000

Explanation:

Delta Importers has a pure discount loan with a face value of $180,000 due in one year. The assets of the firm are currently worth $215,000. The shareholders in this firm basically own a call option on the assets of the firm with a strike price of $180,000.

The equity of the firm is owned by the shareholders and it is identical to when a call option is being held and the strike price will be equal to the face value of $180,000.

The break-even point is a.the maximum possible operating loss. b.where the total sales line intersects the total costs line on a cost-volume-profit chart. c.the total fixed costs. d.the maximum possible operating income.

Answers

Answer:

The answer is B.

Explanation:

To a layman, break-even point is the point where an entity neither make profit nor loss. It is the point where total revenue equals total cost(where the total sales line intersects the total costs line on a cost-volume-profit chart).

Points greater or above this intersection or point mean the firm is making profit and points lesser or below this intersection or point mean the firm is making loss.

Backus Inc. makes and sells many consumer products. The firm’s average contribution margin ratio is 35%. Management is considering adding a new product that will require an additional $15,000 per month of fixed expenses and will have variable expenses of $7.80 per unit.
Required:
A. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to 35%.
B. Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly operating income by $6,000.

Answers

Answer:

a) $12 per unit

b) $2,693 units

Explanation:

contribution margin ratio formula = contribution margin / total revenue

contribution margin = total revenue - variable costs

0.35 = (revenue - 7.80) / revenue

0.35revenue = revenue - 7.80

7.80 = 0.65revenue

revenue = 7.80/.65

revenue = 12

number of units required to increase revenue by $6,000:

= (fixed costs + desired profits) / contribution margin

= ($15,000 + $6,000) / $7.80 = $21,000 / $7.80 = 2,692.31 ≈ we must round up to $2,693 units

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You plan to take your hair blower to Europe, where the electrical outlets put out 240 V instead of the 120 V seen in the United States. The blower puts out 1700 W at 120 V.Required:a. What could you do to operate your blower via the 240V line in Europe? which one is it?b. What current will your blower draw from a European outlet?c. What resistance will your blower appear to have when operated at 240 ? Need help and will mark brainlist and thank You In a circle whose center is O, arc AB contaisn 100 degrees. Find the number of degrees in angle ABO? Using virtualization comes with many advantages, one of them being performance. Which of these is NOT another realistic advantage of using virtualization over dedicated hardware?a. There are improvements in security and high availability during outage.b. There are cost benefits.c. Maintenance and updates are simplified or eliminated.d. There are fewer points of failure. Research supports the widely-held fear that adolescent use of social media will lead to them being less social and less connected to others in an old-fashioned, face-to-face way.a. Trueb. False Find the area of the shape shown below.1255units How did the English colonists profit from the slave trade?A. They sold the slaves to the colonies of other countries.B. They used slave labor to produce cash crops.C. They put well-trained slaves in their armies.D. They traded slaves to the natives for supplies. Read the excerpt from Robert Yatess notes from the Constitutional Convention on June 11, 1787. Mr. Wilson was of opinion, and therefore moved, that the mode of representation of each of the States ought to be from the number of its free inhabitants, and of every other description three fifths to one free inhabitant. What was James Wilsons most notable contribution to the drafting of the Constitution? the Three-Fifths Compromise the Virginia Plan the Great Compromise the New Jersey Plan Product is labeled "Gentlemen 50+" and states that the antioxidants and vitamins it contains slow aging in men. What can you state about targeted products such as this one?a. Evidence does not support a role for antioxidant supplements against chronic diseases.b. Most men over the age of 50 have inadequate nutrient intakes and would benefit from this product.c. This supplement would be more helpful for smokers than for nonsmokers.d. The antioxidants included in this supplement have all been shown to be extremely effective in free radical protection.e. This target product is beneficial because men over 50 need a unique proportion of nutrients. Please help I don't understand this problem! PLEASE HELP Weekly wages at a certain factory arenormally distributed with a mean of$400 and a standard deviation of $50.Find the probability that a workerselected at random makes betweenh$250 and $300. Select the correct answer. If , which statement is true? if g(x) = f(1/3x) A. The graph of function f is stretched vertically by a scale factor of 3 to create the graph of function g. B. The graph of function f is stretched horizontally by a scale factor of 3 to create the graph of function g. C. The graph of function f is compressed horizontally by a scale factor of to create the graph of function g. D. The graph of function f is compressed vertically by a scale factor of to create the graph of function g. A historian is examining religion's role in history. Which question might thehistorian ask if she were organizing her study by period. Revenue of $1,000 was collected in advance from customers for goods and was recorded as sales revenue. At year end, $600 of the revenue collected in advance is earned. The adjusting entry includes a: How many adults must be randomly selected to estimate the mean FICO (credit rating) score of working adults in a country? We want % confidence that the sample mean is within points of the population mean, and the population standard deviation is . I NEED HELP PLEASE ! I GIVE 5 STARS ! which president had a greater impact on the United States?- George Washington or Abraham Lincoln? the city of James town is 2 meters below sea level. Takoradi, a city in western region, is 7 meters below sea level . How much higher is James town than Takoradi Richard is a licensed agent who represents Spartan Health Plan and its Medicare Advantage (MA) plans. Richard has several clients who have recently come to him for help who are in their initial coverage election period (ICEP) and are interested in enrolling in one of Spartan Health Plans MA plans. Alice will soon turn 65 and retire. Alice has coverage through Spartan Health Plan offered by her employer. Bob had health coverage through Spartan but dropped the coverage when he retired early to travel overseas. Bob, who has just turned age 65, is now back in the United States. Charlotte, who will turn 65 next month, has coverage through Athena Health plan a company Richard also represents. Who qualifies for the opt-in simplified enrollment mechanism? According to Glaukon in The Ring of the Gyles, people are naturally Read the Greek myth "Midas" retold by Thomas Bulfinch and answer the question. [1] Bacchus, on a certain occasion, found his old schoolmaster and foster-father, Silenus, missing. The old man had been drinking, and in that state wandered away, and was found by some peasants, who carried him to their king, Midas. Midas recognized him, and treated him hospitably, entertaining him for ten days and nights with an unceasing round of jollity. [2] On the eleventh day he brought Silenus back, and restored him in safety to his pupil. Whereupon Bacchus offered Midas his choice of a reward, whatever he might wish. He asked that whatever he might touch should be changed into gold. Bacchus consented, though sorry that he had not made a better choice. [3] Midas went his way, rejoicing in his new-acquired power, which he hastened to put to the test. He could scarce believe his eyes when he found a twig of an oak, which he plucked from the branch, become gold in his hand. He took up a stone; it changed to gold. He touched a sod; it did the same. He took up an apple from the tree; you would have thought he had robbed the garden of the Hesperides. His joy knew no bounds, and as soon as he got home, he ordered the servants to set a splendid repast on the table. Then he found to his dismay that whether he touched bread, it hardened in his hand; or put a morsel to his lip, it defied his teeth. He took a glass of wine, but it flowed down his throat like melted gold. [4] In consternation at the unprecedented affliction, he strove to divest himself of his power; he hated the gift he had lately coveted. But all in vain; starvation seemed to await him. He raised his arms, all shining with gold, in prayer to Bacchus, begging to be delivered from his glittering destruction. Bacchus, merciful deity, heard and consented. "Go," said he, "to River Pactolus, trace its fountain-head, there plunge yourself and body in, and wash away your fault and its punishment." He did so, and scarce had he touched the waters before the gold-creating power passed into them, and the river sands became changed into gold, as they remain to this day. Select a possible theme of the myth. Gold is a symbol of wealth and authority in many cultures. People who expect a reward for good deeds are selfish. Money does not bring as much happiness as friendship. Wishes are sometimes better when they don't come true.