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1. (10 marks) Advanced Technology manufactures smart pens. The average selling price is $45.00 per unit, with unit variable costs $18.50. Fixed costs associated with
1. (10 marks) | Advanced Technology manufactures smart pens. The average selling price is $45.00 per unit, with unit variable costs $18.50. Fixed costs associated with this product total $500,000.00. Calculate the net income or loss if 30,000 units are made and sold. | |||
2.(42 marks) | Rhoda runs a small home-based business to make and sell masks. The average material cost for one mask is $1.20, her labour cost is $1.00 per unit sold, and sells it to her customers on average of $3.50 per unit. She spends $150.00 per month for advertising. | ||||
a. (6 marks) What is the unit variable cost? | |||||
b. (6 marks) What is the unit contribution margin? | |||||
c. (6 marks) What is the contribution rate? | |||||
d. (6 marks) What is her net income or loss if 500 units are sold? | |||||
e. (6 marks) What is the break-even point in units? | |||||
f. (6 marks) What is the break-even point in dollars? | |||||
g. (6 marks) What is the new unit break-even point if she increases her advertising costs by 30% per month? |
4 | (10 marks) Jones invested $2,600,000.00 in real estate on December 1, 2009. He sold the property on June 15, 2021 for $4,150,000.00. What is the regular and annualized return on investment? | |||
5 | (10 marks) Adam buys a stock on February 15, 2020 at $48.50 per share and sells it on October 25, 2020 for $59.70 per share. What is the regular and annualized return on this investment? | |||
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