An assumption of CAPM is that investors do not face transaction costs. In particular, CAPM assumes that markets are liquid in the sense that you can always trade any number of shares you would like to any time. In reality, the overall market may become more illiquid in certain times and less illiquid in other times. When the market is illiquid, investors are more hindered from trading by frictions in the market. Suppose that the price of a certain security tends to go up when the overall market becomes more illiquid. Would you expect this security to have a higher or lower expected return than what the CAPM predicts?

Answers

Answer 1

Answer: Higher return than CAPM

Explanation:

CAPM assumes that markets are liquid and that there are no transaction costs. This means that when it gives the expected return of a security, it does so without accounting for illiquidity.

If the security is therefore affected by illiquidity such that the price goes up in such a situation, CAPM would not have accounted for this which means that the expected return of the security should be higher than what CAPM predicts to cater for this price increase.


Related Questions

The relevant production range for Challenger Trailers, Inc. is between 120,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month:__________. A. the fixed costs and the variable cost per unit will not change B. the fixed costs may change, but the variable cost per unit will remain the same C. the fixed costs will remain the same, but the variable cost per unit may change D. both the fixed costs and the variable cost per unit may change

Answers

Answer:  D. both the fixed costs and the variable cost per unit may change

Explanation:

It is said that Fixed costs do not change regardless of production level but this is not entirely true. Fixed costs usually do not change for a production range but if the range is passed, the fixed costs might then increase and a new fixed cost for the new relevant range will be charged.

Variable costs are variable because they change with production so if the company is producing more units, they will be incurring more variable costs.

In conclusion therefore, if the company produces more units than its relevant production range, it risks both fixed and variable costs changing.

Suppose currently, there is free trade with no government intervention. Suppose now the government in Econland wants to intervene in this market and bring widget prices back to the pre-trade free market price of F. What could they do achieve this?A. The government cannot do anything to bring widget prices back to FB. Set a quota on imports of LNC. Set a quota on imports of 0D. Tax imports by KRE. Tax imports by $0

Answers

Answer:

Tax imports by KRE

Explanation:

When there is complete, unregulated free trade in the economy, the price of widgets in any local economy is the same as the world price.

In this case, i the government in Econland wants to bring back the price of widgets, from world price, to previous domestic price, all it has to do is to impose a tax on imports equal to the value of the difference between the world price and the previous price. This tax on imports is known in economics as a tariff, and it is the most commonly tool of protectionist economic policy.

For example, suppose that the world price of widgets, under free trade is $2 each, and the previous price was $4, so in order to raise the price for world price to previous price, all the government has to do is to impose a tariff of $2, like this, widgets in the domestic market will be $4 again.

If there is free trade without the intervention of the government, the way that the government can intervene would be to Tax imports by KRE.

What is free trade?

This is the type of trade in an economy where the government of the country would not intervene in the market.

In this market system, the government would not use tariffs on the exports or try to discriminate against imports in  the country.

Read more on free trade here: https://brainly.com/question/10608502

A $10,000 bond with 18%/year, compounded semi-annually (interest is paid every six month) is available in the market. The bond matures in 10 years. The closest PW of this bond if the purchaser can earn 12%/year, compounded quarterly is:_____.

Answers

Answer:

present value = 13313.50

Explanation:

given data

bond = $10,000

interest = 18% per year = 9% per semi annual period

bond matures = 10 years = 20 semi annual period

purchaser can earn =  12% per year compounded quarterly = 3% per quater

so efftive semi annual rate is

efftive semi annual rate = (1+3%)² - 1  

efftive semi annual rate = 6.09%

and

we get here coupon paymnet that is

coupon payment = 9% × $10,000  

coupon payment = $900

so present value is

present value = 900 (P/A,6.09%,20) + 10000 (P/F,6.09%,20)

present value = 900 × 11.3865  +  10000 × 0.3065

present value = 13313.50

You are the strategic leader of a highly competitive electronics company, Anderson Inc. Anderson Inc. is a global leader in electronics sales to corporate and international customers. The competitive nature of the market is creating the need to implement new and well researched strategies and online tools in order to compete with another company that is taking contracts from your organization daily. This other company, Henkerson Inc., is offering products at a slightly lower cost. Their customer service ratings, however, are much lower than Anderson Inc.

Anderson’s customer service could be superior as a result of :_________

Answers

Answer:

The options are missing, so I looked for similar questions. The option that I believe is correct is:

A good reputation for having few OOS (out-of-stock) problems when fulfilling large orders.

Customer service is extremely important in today's world were competition is fierce and global. The less competition, the less value customer service has, but companies from around the world compete against each other. E.g. if you do not like how some salespeople treat you at a certain store, you can go online and buy the same products from a retailer 2,000 miles away. You must always remember that keeping old customers happy and loyal is always much easier and cheaper than getting new customers.

In a B2B environment, costs are important, and any difference in costs is much more important because the quantities sold are larger. But if the company that sells the lower priced products offers a terrible customer service and is not able to fulfill orders in time, then B2B clients will leave them because time is money. Th elonger the lead time, the higher the stockout probabilities and you require a larger safety stock which costs money.

The Extreme Reaches Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, and $10.00 a share over the next four years, respectively. After that the dividend will be a constant $2.50 per share per year forever. A) What is the market price of this stock if the market rate of return is 15 percent? Also estimate the dividend yield over the first year.
B) Continue from the previous problem. What is the market price of this stock in one year? What is the capital gains yield over the first year?
Im looking for help on part B, I have already completed part A but it would be helpful to check my answer. ($26.57/share)

Answers

Answer:

a)

Div₁ = $3

Div₂ = $5

Div₃ = $7.50

Div₄ = $10

Div₅ = $2.50

the terminal value at year 4 = $2.50 / 15% = $16.67

P₀ = $3/1.15 + $5/1.15² + $7.50/1.15³ + $26.67/1.15⁴ = $2.61 + $3.78 + $4.93 + $15.25 = $26.57

dividend yield over the first year = $3 / $26.57 = 11.29%

b)

P₁ = $5/1.15 + $7.50/1.15² + $26.67/1.15³ = $4.35 + $5.67 + $17.47 = $27.49

capital gains yield = ($27.49 - $26.57) / $26.57 = 3.46%

In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?a. 9.6% lower b. 9.6% higher c. 10.6% lower . d. 10.6% higher

Answers

Answer:

d. 10.6% higher

Explanation:

Given that;

Real GDP = $13.2 trillion

Nominal GDP = $14.6 trillion

GDP deflator = (Nominal GDP/Real GDP)× 100)

Hence,

GDP deflator = (14.6 / 13.2 ) × 100

GDP deflator = 110.6%

Thus,

= 110.6 - 100

= 10.6% higher

The basic principle involved with expense recognition is: Multiple Choice All costs that are used to generate revenue are recorded in the period the revenue is recognized. All transactions are recorded at the exchange price. The business is separate from its owners. The business will continue to operate indefinitely unless there is evidence to the contrary.A company orders office supplies in June. Those supplies are received and paid for in July. The supplies are used in August. In which month should the company record supplies expense

Answers

Answer:

All costs that are used to generate revenue are recorded in the period the revenue is recognized

Supplies expense is recorded in August

Explanation:

Expenses are the cost that a company incurs in the process of generating revenue from an asset. As such when a business is paying cost like wages, rent, and office materials it is generating revenue from sales and services provided.

The expense recognition principle requires that a business records expenses when revenue associated with them are recognised.

An office that orders office supply and uses them in August will only recognise supply expense when there is use of the office supply.

So supply expense will be recognised in August

(TCO B) WordPerfect Corporation noticed that the more of its word processing software packages it sold, the more customers complained or suggested improvements. In such a situation, WordPerfect Corporation has the opportunity to:_________.
a. steadily improve its word processor software.
b. be acquired by a larger company that can take over the development of the product.
c. develop a completely new program.
d. discontinue production.

Answers

Answer:

a. steadily improve its word processor software.

Explanation:

Remember, although we are told WordPerfect Corporation customers complained they also suggested improvements. Meaning, the product isn't entirely bad but needs some improvements.

Instead of developing a completely new program or discontinue production, It makes logical sense for them to improve the word processor software to fit the needs of the customers.

On June 1, 2018, Marigold Company and Swifty Company merged to form Nash Inc. A total of 769,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 599,000 shares of stock for cash. All 1,368,000 shares were outstanding on December 31, 2020. Nash Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 36 shares of common at any interest date. None of the bonds have been converted to date. Nash Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,688,000. (The tax rate is 20%.)

Determine the following for 2020:

a. Basic earnings per share.
b. Diluted earnings per share.
c. The earnings figures to be used for calculating:
d. Basic earnings per share.
e. Diluted earnings per share.

Answers

Answer:

a. Basic earnings per share.

weighted average outstanding:

January 1 = 769,000 stocks

April 1 = 599,000 x 9/12 = 449,250 stocks

total weighted average outstanding stocks = 1,218,250 stocks

basic earnings per share = $1,688,000 / 1,218,250 = $1.3856 ≈ $1.39

b. Diluted earnings per share.

diluted shares = ($600,000 / $1,000) x 36 stocks x 1/2 = 10,800

diluted earnings per share = $1,707,200 / (1,218,250 + 10,800) = $1,707,200 / 1,229,050 = $1.389 ≈ $1.39

c. The earnings figures to be used for calculating:

Basic earnings per share

= net income = $1,688,000

Diluted earnings per share

= net income + interests saved - taxes on interests saved = $1,688,000 + $24,000 - $4,800 = $1,707,200

Yukelson Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows:
Cost when acquired $ 396,000
Accumulated depreciation (based on straight-line depreciation, an estimated life of 50 years, and a $36,000 residual value) 72,000
During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $30,000 (from $36,000)). The depreciation method will not change.
Required:
1. Compute the annual depreciation expense prior to the change in estimates.
2. Compute the annual depreciation expense after the change in estimates.3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?

Answers

Answer:

1. Compute the annual depreciation expense prior to the change in estimates.

annual depreciation = ($396,000 - $36,000) / 50 = $7,200 per year

2. Compute the annual depreciation expense after the change in estimates.

annual depreciation = ($324,000 - $30,000) / 20 = $14,700 per year

3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?

Any changes in an asset's useful life are reported prospectively, this means that they do not affect any past records, only future records are affected. In this case, the depreciation expense per year will increase form $7,200 to $14,700, so net income will be negatively affected by it. Cash flows will not be affected, since depreciation expense is a non-cash expense. P,P&E on the balance sheet will be affected because the net value of the building will decrease faster.  

You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The beta of the resulting portfolio is:_____

a. 1.08
b. 0.8
c. 1.40
d. 1.15
e. 0.36

Answers

Answer:

The answer is D). 1.15, hope this helps, have a great day/night, stay safe, happy thanksgiving!

For the past year, Momsen, Ltd., had sales of $45,212, interest expense of $3,386, cost of goods sold of $15,609, selling and administrative expense of $11,196, and depreciation of $5,545. If the tax rate was 35 percent, what was the company's net income?

Answers

Answer:

$11,704

Explanation:

Given the above information, we will use the formula below to calculate the net income.

Net income= (Sales - cost of goods sold - selling and administrative expenses - interest - depreciation expense - depreciation) - tax + depreciation.

Sales

$45,212

COGS

($15,609)

Gross profit

29,603

Less:

Selling and administrative expense

($11,196)

Interest expense

($3,386)

Depreciation

($5,545)

EBT

$9,476

Tax $9,476 × 35% = ($3,317)

Depreciation

$5,545

Net income

$11,704

Explain the importance of feedback in the communication process.(3marks)

Answers

The importance of feedback in the communication process is it helps you give your honest opinion on that product, etc.

Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond?
a. the price of the bond will fall
b. the price of the bond will raise

Answers

Answer: a. the price of the bond will fall.

Explanation:

If one buys a 7% coupon, 20-year bond today when it’s first issued and the interest rates suddenly rise to 15%, the value of the bond will decrease.

This is because there's an inverse relationship between price and interest rates, that is, the increase in one variable will lead to the decrease in the other variable. When there is a rise in the inters rate, it should be noted that the payments on fixed coupon are worth less.

Therefore, the price of the bond will fall.

Calculate the yield to maturity of a zero coupon bond with a face value (par value) of $1,000, maturing in 15 years and selling for a price of $525.75.a. 5.62%.b. 4.38%.c. 8.74%.d. 15.26%.e. 16.27%.

Answers

Answer:

YTM = 0.043793 or 4.3793% rounded off to 4.38%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a zero coupon bond is as follows,

YTM = [ (( F / PV)^1/n)  - 1 ]

Where,  

F is the Face value of the bond

PV is the current value of the bond

n is the number of years to maturity

YTM = [ (( 1000 / 525.75)^1/15) - 1 ]

YTM = 0.043793 or 4.3793% rounded off to 4.38%

These items are taken from the financial statements of Cullumber Company at December 31, 2022.


Buildings $88,872

Accounts receivable 10,584

Prepaid insurance 2,688

Cash 9,946

Equipment 69,216

Land 51,408

Insurance expense 655

Depreciation expense 4,452

Interest expense 2,184

Common stock 50,400

Retained earnings (January 1, 2022) 33,600

Accumulated depreciation—buildings 38,304

Accounts payable

Answers

Answer:

lkpojiuhygtfrdrswaqzxcvbnmkgsawru

J-Pac Co. uses the Allowance Method to account for uncollectible Accounts Receivable. If they determine that $900 of the balance owed by Matt Evans is uncollectible, the correct entry to write it off would be:

Answers

Answer and Explanation:

The correct entry to write off is shown below:

Allowance for Doubtful Accounts $900

         To Accounts Receivables $900

(Being written off is recorded)

Here the allowance for doubtful accounts is debited as it increased the assets and the account receivable is credited as it decreased the assets. Also, the assets contains the normal debit balance

Do you agree or disagree with the following statements

a. The demand curve facing a monopolistic competitor in a market where all producers charge different prices becomes less elastic when it engages in international trade
b. According to the gravity equation, countries closer to each other trade more
c. The only gain from trade in monopolistic competition in trade is lower prices
d. The closer to 1 the index of intra industry trade is, the greater the difference between exports and imports of the same goods.

Answers

Answer:

a. The demand curve facing a monopolistic competitor in a market where all producers charge different prices becomes less elastic when it engages in international trade - Disagree

This statement is not true. If a monopolistic competitor engages in international trade, it will meet more competition, meaning that the audience (demand) that it has is more sensitive to prices, because they have more options available.

b. According to the gravity equation, countries closer to each other trade more - Agree

The gravity equation tells us that the volume of international trade is correlated with geographical proximity and economic size. That is to say, the closer and larger two economies are, the more international trade they engage with each other.

c. The only gain from trade in monopolistic competition in trade is lower prices - Disagree

Gains are the most important in lower prices, but there are also gains in competitiveness and quality.

d. The closer to 1 the index of intra industry trade is, the greater the difference between exports and imports of the same goods. - Disagree

An index of intra industry trade of 1 indicates that the country imports and exports roughly the same amount for a particular type of goods (the goods that belong to that industry). Hence, the statement is not true.

Compute the standard cost for one hat, based on the following standards for each that:_______. Standard material: 3/4 yard of fabric at $5.00 per yard Standard labor: 2 hours at $5.75 per hour Factory overhead: $3.20 per direct labor hourRound your answer to two decimal places. Total standard cost $______

Answers

Answer:

$21.65

Explanation:

Computation for the Total standard cost

Using this formula

Total standard cost = Material cost + Labor cost + Overhead cost

Let plug in the formula

Total standard cost = 3/4*5 + 2*5.75 + 3.2*2

Total standard cost= $21.65

Therefore the Total standard cost will be $21.65

Parker is a highly skilled sales person at Byberry, which is a 30-year-old company that has grown significantly in terms of revenue and product offerings. It sponsors a pension plan that provides a benefit of 2% times the years of participation times the average of the final three years of salary. Parker has worked for Byberry for the last 30 years and earned $200,000 two years ago, $150,000 last year, and $250,000 this year. If he is retiring this year, how much should he expect to receive as a pension benefit?

Answers

Answer:

$120,000

Explanation:

The retirement benefit that Parker expects is

2% x number of years worked( 30 ) x {($200,000 +$150,000 +$250,000) /3}

=2/100 x 30 x (600,000/3)

=0.02 x 30 x $200,000

=0.6 x $200,000

=$120,000

why is the period from late 20s to early 40s the best time for becoming an entreprnur?​

Answers

Late 20s to late 40s: This is almost the perfect time for would-be entrepreneurs, for many reasons: At this point in life, they know what they like, and what they don't like. They have obtained business and life skills. They have some assets and credit.

The period from late 20s to early 40s the best time for becoming an entrepreneur is the creative and innovative ideas are the used is the startup new business.

What is entrepreneur?

The term “entrepreneur” refers to the person who launches a new business at their own risk and profit basis. The starting up of a new business with a new idea and logic is called entrepreneurship. The entrepreneur's main motive is to set up a business to generate employment.

The period from the early 20s to the early 40s is ideal for an entrepreneur since technology is evolved enough to start a new business. The business owner works on websites, blogs, digital media, photo editing, television, and radio. The inventive and creative ideas that comprise the most effective company plans.

As a result, the  20s to early 40s are the best period to entrepreneur.

Learn more about on entrepreneur, here:

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Simon has net investment income of $38,000 and MAGI of $223,000 and files as a single taxpayer. Simon's additional Medicare tax is:______________

Answers

Answer:

$874

Explanation:

Calculation for Simon's additional Medicare tax

Based on the information given we were told Simon has a MAGI of the amount of $223,000 in which part of it is for wages income of the amount of $185,000 ($223,000 -$38,000)

while the amount of $38,000 is the net investment income which means that Samson MAGI is below the threshold limit of the amount of $200,000, therefore tax rate of 3.8% tax will be applied.

Now let calculate the additional Medicare tax

Additional Medicare tax = ($38,000-$15,000)*3.8%

Additional Medicare tax =$23,000*3.8%

Additional Medicare tax = $874

Therefore Simon's additional Medicare tax is:874


A change in which of the following will cause the aggregate demand curve to shift?
A)
energy costs
B)
productivity of workers
C)
regulations
D)
consumer spending

Answers

Answer:

D) consumer spending

Explanation:

The aggregate demand is the total of all goods and services that consumers are willing and able to buy in the economy in a given period. It is the demand for all goods and services in the entire country per period.  Price variation usually causes movements along the demand curve.

Other factors that influence governments, firms, and household expenditures cause the aggregate demand curve to shift.  A change in consumer spending will reduce the number of goods demanded. The aggregate demand will shift inwards.

XYZ Corporation, whose common stock is currently selling for $40 per share, is having a rights offering. The terms of the offering require 10 rights plus $35 to subscribe to one share of stock. Compute the theoretical value of a right before the ex-rights date.

Answers

Answer:

$0.45

Explanation:

Computation for the theoretical value of a right before the ex-rights date

Using this formula

Theoretical value=(Common stock-Required offering subscription shares)÷(Offering require right+1)

Let plug in the formula

Theoretical value= ($40 ‒ $35) ÷ (10+1)

Theoretical value= $5.00 ÷ 11

Theoretical value=$0.45

Therefore the theoretical value of a right before the ex-rights date will be $0.45

Sarah's dog had purebred puppies that she decided to sell on www.puppyfind.com. She ships them using an airline. If a puppy dies and the buyer decides to sue, who can he sue?


Sarah

the sole proprietorship

the airline carrier

all of the above

Answers

Answer:

The buyer should sue the airline carrier

Explanation:

Because it is the airlines job to make sure that the puppy are safe and health

Donna runs an inn and charges $300 a night for a room, which equals her cost. Sam, Harry, and Bill are three potential customers willing to pay $500, $325, and $250, respectively. When the government levies a tax on innkeepers of $50 per night of occupancy, Donna raises her price to $350. The deadweight loss of the tax is:________

a. $25
b. $50
c. $100
d. $150

Answers

Answer:

a. $25

Explanation:

According to the given situation, the computation of deadweight loss of the tax is shown below:-

Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)

Or, Deadweight Loss = 1 ÷ 2 × ($50)

Or,  Deadweight Loss = $25

Therefore the correct option is a. $25

We simply considered the above values so that the deadweight loss of the ta could come

The deadweight loss of the tax is :

According to the given situation, the computation of deadweight loss of the tax is shown below:-

Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50) Deadweight Loss = 1 ÷ 2 × ($50) Deadweight Loss = $25

The deadweight loss of the tax is $25.

Thus, the correct answer is a.

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One effective way to manage credit card debt is to:

A. exaggerate your income when applying for a credit card.

B. spend your entire credit limit before making any payments.

C. replace high-interest credit cards with low-interest options.

D. always pay only the minimum payment required each month.

Answers

Answer:

C. replace high-interest credit cards with low-interest options.

Explanation:

A credit card provides a secure and convenient way to pay for goods and services even when they do not have money. The credit card gives the user access to instant credit every time they use it. The user does not incur any charges should they pay the amount due before its due date.

Credit card interest rate charges are among the highest in the industry. If the user is late in their payment, the interest fee and other charges accumulate real quick. Shifting to cards with lower interest is one way of managing credit card debts.

Courageous, Inc. just paid a dividend of $1.80per share on its stock. The dividends are expected to grow at a constant rate of 3 percent per year, indefinitely. If investors require a 12 percent return on Courageous stock, what is the current price? What will the price be in 3 years? In 15 years?
PART A:
Current Price: $____________.
PART B:
Price in Three Years: $____________.
PART C:
Price in Fifteen Years: $____________.

Answers

Answer:

P0 = $20.6

P3 = $22.5101762 rounded off to $22.51

P15 = $32.09412 rounded off to $32.09

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,

D0 * (1+g) is dividend expected for the next period /year g is the growth rate r is the required rate of return or cost of equity

Current Price

P0 = 1.8 * (1+0.03)  /  (0.12 - 0.03)

P0 = $20.6

Price in three years

To calculate the current price of P0 we use the dividend for Year 1 or D1. Similarly, to calculate the price in three years or P3, we will use D4.

P3 = 1.8 * (1+0.03)^4  /  (0.12 - 0.03)

P3 = $22.5101762 rounded off to $22.51

Price in fifteen years

We will use D16.

P15 = 1.8 * (1+0.03)^16 / (0.12 - 0.03)

P15 = $32.09412 rounded off to $32.09

the BE in units for CompuTech in 2021?
Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during
the year?​

Answers

Question Completion:

Assuming the following: (i) the sales price for each CompuTech product sold is $50; (ii) each product sold costs $25 in Raw Material components; and the business Fixed Cost is $45,000.

Q1: What is the BE in units for CompuTech in 2021?

Q2: What impact would occur to the BE if the variable cost of materials rose by 10% during the year?

Answer:

CompuTech

Answer 1: The BE (Break-even Point) in units for CompuTech in 2021 is:

1,800 units.

Answer 2: If the variable cost of materials rose by 10%, the BE will increase to:

2,000 units.

Explanation:

a) Data and Calculations:

Selling price per unit = $50

Direct material cost per unit =  $25

Contribution per unit = $25

Fixed Cost = $45,000

Break-even point = Fixed Cost/Contribution per unit

= $45,000/$25

= 1,800 units

b) BE if the variable cost of materials rose by 10% during the year:

Selling price per unit = $50

Direct material cost per unit =$27.50 ($25 * 1.1)

Contribution per unit = $22.50

Fixed Cost = $45,000

Break-even point = Fixed Cost/Contribution per unit

= $45,000/$22.50

= 2,000 units

c) The break-even point in units represents the quantity at which the costs of production equal the revenues for the goods.  It is the point where no profit is made, but all the costs, including fixed costs, are covered by the revenues.

Sick time and vacation time are considered a benefit because even
though you are not at work you still get paid.

True

False​

Answers

Answer:

TRUEE

i just know

Explanation:

Hope this helps!

if so please dont forget to mark BRAINLIST!!

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