Question
Please do them all not only 1 all the answers are given i need only calculations for all. 28. Ajax Corporation is performing a sensitivity
Please do them all not only 1
all the answers are given i need only calculations for all.
28. Ajax Corporation is performing a sensitivity analysis on one of its product. The product currently sells for $210 per unit, with variable cost of $90 per unit and fixed costs of $400,000. Ajax currently sells 12,000 units of this product. Ajax is considering raising its price by 15%. If prices increase, then it is expected that units sold will decrease by 10%. Calculate the change in operating income. A. $196,200 decrease B. $248,500 decrease C. $196,200 increase D. $248,500 increase
Explanation:
45. Market interest rates have risen substantially in the five years since an investor purchased Treasury bonds that were offering a 7 percent return. If the investor sells now she is likely to receive: A. greater than a 7 percent total return. B. less than a 7 percent total return. C. a 7 percent total rate of return. D. a 7 percent nominal return but less than a 7 percent real return.
Explanation:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started