To compute the contribution margin ratio, divide CM by the Selling Price. One of the first applications of variable costing is computing the break-even point. This is the point at which sales just equal to the total costs. It can be defined as either units or sales dollars. Break-even units is the number of units required to cover fixed costs for a period of time.
Also, they pointed the graph that every firm should use in order to find their optimal WACC. Pratt and Grabowski ( 2008 ) state that the WACC should be found when dividing DEBT/ TOTAL CAPITAL and that represents for one company ideal and optimal WACC. Also, they state that WACC should be higher than the cost of debt but lower than cost of equity, rather it should be somewhere in the middle of these two, depending if the amounts of debt and equity are the same. The WACC calculation will give us the discount rate at the end. That rate represents how much we are on average paying interest for the money we have borrowed from various sources.
Adjusted price index is the percent change in consumer price index, which is used to measure inflation. After we find the adjusted price index, we divide the gross income by the adjusted price index to get Mrs. Park’s real income. Our Examination of figure 1 shows the Average real income to be $ 37,760.48, while the median is $ 37,853.88. The variance for real income is $426,970.77 and the standard deviation for Nancy Park’s real income is $653.43. The average, or mean, real income shows all real income divided by the amount of years to show the average real income made.
The fifth formula used for the purpose of calculating the grams of copper produced was moles of Cu multiplied by the gram atomic weight of copper over moles of copper. This ended up being used as .0431 moles of Cu* 63.55 grams of Cu/ 1 mole of Cu = 2.740 grams of copper produced. The actual yield of copper is calculated by the baby food jar and copper mass minus the mass of the baby food jar. 97.7070 grams- 94.8280 grams = 2.8791 grams of copper. The percent yield of copper is calculated by the actual yield (value #6) being divided by the theoretical yield of copper (value #5), then multiplied by 100.
(ref) The discount rate used was the after tax cost of debt. We worked out and the net present values of each option and thereafter picked the option that has lower present value of cash outflows. Our NPV calculations for both options were backed with sensitivity scenario analysis of both the buy and leas options. Sensitivity Scenario Analysis Sensitivity analysis scenario is used to show how changes in one or more variables below and above the used variables would affect the intended results. I our sensitivity analysis scenario for Dragon Air lease vs buy decision we varied the cost of capital between 1% and 5% as the main driver in the case.
Calculate difference between the expected value and observed value (also known as residual). The square of number is used to avoid negative values. Divide this answer by the expected value in order to normalize. Evaluate this for each cell in the table, and after that take sum of all values. X2 =((20-25)2/25) + ((30-25)2/25) + ((30-25)2/25) + ((20-25)2/25) =(25/25) + (25/25) + (25/25) + (25/25) =1 + 1 + 1 + 1 Chi-square value =4 The Chi-square value and degrees of freedom is used to obtain p-value.
Referring to our calculations in Appendix 1. you may find that total amount of costs assigned to Regular model is $765.857,14 and $771.142,86 to Deluxe model. After final computations you can see that the cost of one unit of Regular model is $2,55 and cost of one unit of Deluxe model is $3,87. b) Determine the product costs and profits per
The sum of the direct use, indirect use and option values equals the total use value of the system; the sum of the use value and the non-use value is the total value of the ecosystem (Pearce and Turner, 1990 as cited in Hein et al., 2006). If all values have been expressed as a monetary value, and if the values are expressed through comparable indicators (e.g., consumer and/ or producer surplus), the values can be summed. If non-monetary indicators are used for the non-use values, the values can be presented side-by-side— leaving it to the reader to compare the two value types (Strijker et al., 2000; Hein et al., 2006). Alternatively, they can be compared using Multi Criteria Assessment (MCA). With MCA, beneficiaries can be asked to assign relative weights to different sets of indicators (non-monetary as well as monetary), enabling comparison of the indicators (Folke, 1997 as cited in Hein et al., 2006).
It analyzes individually provides a partial concept or partial figure of a country It is concerned with the overall performance of the economy However it is only concerned with the individual entities. Firstly, let me start by explaining the meaning of macroeconomic and microeconomic. Macroeconomics is the division of economics which help us to study the behavior and performance of an economy; it also helps us to focus on the aggregate changes in the economy for example Gross Domestic Product (GDP), inflation and unemployment. Macroeconomics focused on the determinants of total national output, it studies the national income not only the household or individual income but the overall price level; it also analyze the demand of total employment in the economy not only the
An example, Shell a Gasoline production company or any beverage company may use process costing to track its costs to produce its beverages. Process costing involves the accumulation of costs for lengthy production runs involving products that are indistinguishable from each other. For example, the production of 200,000 gallons of gasoline would require that all oil used in the process, as well as all labor in the refinery facility be accumulated into a cost account, and then divided by the number of units produced to arrive at the cost per unit. Costs are likely to be accumulated at the department level, and no lower within the organization. Job Order Costing (Law Firm) Process Costing (Beverage Company) 1.
Derivatives Assignment ‘Option, Futures and Forwards’ October 2015 Instructor: Jacques Bernard Done by: Zainab Yehia Bakr i. Explain the difference between selling a call option and buying a put option. Selling a call option is when you give the other party the right to buy an underlying asset at an agreed upon price ‘strike price’ on an agreed upon date. When you write a call option, you have the obligation to sell the underlying asset to the counterparty, and the counterparty chooses whether to exercise the contract or not, your payoff would be either negative or zero, in other words, It gives you a payoff of: -Max(St –K,0) = Min(K -St,0) Buying a put option is when you buy the right to sell an underlying asset