Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Public Health And Not For Profit Organizations

Authors: Steven A. Finkler

3rd Edition

0136070736, 978-0136070733

More Books

Students also viewed these Accounting questions