Answer:
a. 79
Explanation:
Opportunity cost can simply be defined as the alternative forgone. That is, opportunity cost is that good, commodity or service or whatsoever is sacrificed in order to obtain another. In economics, it is known as real cost. Thus in the question above, Jose employes strategy A such that when he prepares for two exams in one evening, the opportunity cost of receiving a 94 point on Economics exam is 79 points on the statistics.
Price of elasticity of demand represents the measure of the change in the quantity demanded of a product in relation to its price change. The fact that Jessica buys each month exactly teh same quantity of the roduct (Big Mac) no matter what the price of the product ismeans that Jessica's price elasticity of demand for Big Macs is: 0.
In this situation the price of the product does not affect the demand.
Answer:
Price-Earning ratio = 6.42
Price to Sales Ratio = 1.35
Explanation:
Earning for the year = $285,000
Common stock outstanding = 150,000 shares
* Price has not been given in the question. Assuming $70 is the market price of the share.
1.
Earning per share = Earning for the year / Common stock outstanding
Earning per share = $285,000 / 150,000 = $1.90 per share
Price-Earning ratio = $7 / $1.90 = 6.42
2.
Price to Sales Ratio = Price / Sales = $7 / $5.19 = 1.35
Answer:
Price of bond = $1,365.54
Explanation:
<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>
Value of Bond = PV of interest + PV of RV
The value of bond for Orlando Builders Inc. can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 9% × 1000 × 1/2 = 45
Semi-annual yield = 5.80%/2 = 2.9
% per six months
Total period to maturity (in months)
= (2 × 19) = 38 periods
PV of interest =
45 × (1- (1+0.029)^(-21)/0.029)= 1028.087
Step 2
PV of Redemption Value
= 1000 × (1.029)^(-19×2) =337.45
Price of bond
= 1028.08 + 337.45 =1365.54
Price of bond = $1,365.54
<span>Contribution margin ratio is 40% or $24 per unit
Fixed expenses are $28,800
Variable expense per unit is $36
Assuming Q is quantity, sales needed to achieve monthly net equal to 10% of sales is
Sales = Variable expenses + Fixed expenses + profit
$60Q = $36Q + $28,800 + ($60Q x 10%)
$18Q = $28,800
Q = 1600 units
Monthly sales will have to be 1600 x $60 = $96,000</span>
