Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.25%, a maturity premium of 0.08% per year to maturity applies, i.e., MRP = 0.08%(t), where t is the years to maturity. Suppose also that a liquidity premium of 0.5% and a default risk premium of 0.85% applies to A-rated corporate bonds. How much higher would the rate of return be on a 10-year A-rated corporate bond than on a 5-year Treasury bond?
Answers
In the following question, among the given options, The rate of return on a 10-year A-rated corporate bond would be 1.18% higher than on a 5-year Treasury bond
Real risk-free rate: 3.50%
Average future inflation rate: 2.25%
Maturity premium (MRP): 0.08% per year x 10 years = 0.80%
Liquidity premium: 0.5%
Default risk premium: 0.85%
Total: 7.18%
For the 5-year Treasury bond, the total is 5.38%:
Real risk-free rate: 3.50%
Average future inflation rate: 2.25%
Maturity premium (MRP): 0.08% per year x 5 years = 0.40%
Total: 5.38%
Therefore, the rate of return on the 10-year A-rated corporate bond is 1.18% higher than on the 5-year Treasury bond.
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Related Questions
Consider the industry for widgets. This industry is characterized by a vertical relationship between two monopolists (Widget Retailer "WR" and Widget Manufacturer "WM"). Suppose the downstream market for widgets is characterized by the inverse demand function: P=100−Q, where P is the market price paid by consumers and Q is the total quantity sold. WR obtains its widgets from the monopoly manufacturer WM at a manufacturing price w per widget. WM incurs a cost of £10 per unit in making widgets, while WR incurs a cost of £5 per unit in addition to the price w that it has to pay to WM for widgets. (a) What is the equilibrium price to consumers, P, and the equilibrium manufacturing price w, without vertical integration? What is the profit earned by each firm at these prices? [10 marks] (b) Define the double marginalization phenomenon. Illustrate this phenomenon graphically. [10 marks] (c) Show mathematically that vertical integration increases profits and benefits consumers. Illustrate graphically how vertical integration solves the double marginalization phenomenon. [15 marks] (d) What are the two important assumptions underlying the result in part (c)? Discuss briefly the effects of relaxing these assumptions. [15 marks]
Answers
The equilibrium price to consumers, P, and the equilibrium manufacturing price w, without vertical integration is given by:P = 60, w = 30.At the equilibrium, WM’s profit is given by:πwm = (P - w)q = (60 - 30)30 = £900 and WR’s profit is given by:πwr = (P - c)q = (60 - 5 - 30)30 = £825.
b)Double marginalization phenomenon is the problem of double counting of the markup when a product passes through multiple stages of production before reaching the final consumer. This phenomenon occurs in vertically separated markets. If each player along the supply chain sets its price and quantity, then the upstream and downstream players choose prices and quantities that deviate from the monopoly outcome. Hence, vertical separation creates an inefficiency in the market, which leads to a higher price and lower output than in the monopoly outcome.
c)When vertical integration occurs, the widget manufacturer will acquire the widget retailer and the resulting integrated firm will take over the retailer's operations. The resulting integrated firm will sell widgets directly to consumers. In this case, the manufacturer will sell widgets at a price that includes the retail markup, which will result in a lower retail price.
(c) are the absence of transaction costs and the absence of external effects. Transaction costs refer to the costs associated with negotiating and enforcing contracts between the widget manufacturer and retailer. If transaction costs exist, then integration may not be the best option since it requires one party to give up its autonomy. External effects refer to the effects of the widget manufacturer’s and retailer’s decisions on third parties. If external effects exist, then the optimal decision for the widget manufacturer and retailer may not be the optimal decision for society. The effects of relaxing these assumptions are as follows:If transaction costs exist, then integration may not be the best option since it requires one party to give up its autonomy.
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31.4X R. James drew up the following statement of financial position on 31 December 2017. Statement of Financial Position of R. James as at 31 December 2017 $ Non-current assets Furniture and fittings Motor vehicles Current assets Inventory Accounts receivable Cash at bank Less Current liabilities Accounts payable Net current assets Capital 1 January 2017 ⁸0 7,870 When checking the books, the following errors and omissions were found. (i) A purchase of fittings, $140, had been included in the ******ebook converter DEMO Watermarks******* purchases account. (ii) Motor vehicles should have been depreciated by $280. (iii) A debt of $41 included in accounts receivable was Required: (a) show your calculation of the correct net profit (b) draw up a corrected statement of affairs as at 31 December 2017.
Answers
(a) the corrected net profit is: Capital 1 January 2017 + Net current assets - Non-current assets = $7,870 + ($0 - $140) - $7,590 = $140 b) Total capital $8,010
a) To calculate the correct net profit, we need to adjust for the errors and omissions found. Firstly, the purchase of fittings that was included in the purchases account should have been included in the furniture and fittings non-current asset account.
Therefore, we need to deduct $140 from the purchases account and add it to the furniture and fittings account. Secondly, the motor vehicles should have been depreciated by $280, which means we need to reduce the value of the motor vehicles account by $280. Finally, the debt of $41 that was included in accounts receivable was not paid, so we need to deduct it from the accounts receivable account.
So, the adjusted statement of financial position is:
Non-current assets:
Furniture and fittings $140
Motor vehicles $7,590 (original value of $7,870 - $280 depreciation)
Current assets:
Inventory
Accounts receivable $0 (original value of $41 - $41 debt)
Cash at bank
Less Current liabilities:
Accounts payable
Net current assets:
Capital 1 January 2017
Therefore, the corrected net profit is:
Capital 1 January 2017 + Net current assets - Non-current assets = $7,870 + ($0 - $140) - $7,590 = $140
(b) The corrected statement of affairs as at 31 December 2017 is:
Non-current assets:
Furniture and fittings $140
Motor vehicles $7,590
Current assets:
Inventory
Accounts receivable $0
Cash at bank
Less Current liabilities:
Accounts payable
Net current assets: $0
Capital 1 January 2017 $7,870
Add: Corrected net profit $140
Total capital $8,010
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Handshakes should be:
O firm
o loose
O repeated
o accompanied by eye contact
Answers
Answer:
firm
Explanation:
Prompt
What is liability?
Read More >>
Answers
Answer:
jobless
Explanation:
someone who depend on other people
Fixed costs are important because, at least in the ___________, the firm _______________.
B. short run; cannot alter them
Answers
Costs that are unaffected by a company's level of output are known as fixed costs.Even if the company does not produce anything, these expenses will still be incurred.
What is a fixed expense?
A cost that fluctuates inversely with changes in activity volume on a unit basis but remains constant overall is known as a fixed cost.
What factors determine a company's fixed cost level?
Costs that are usually based on time rather than on how many products or services your company sells or produces are known as fixed costs.Rent and lease payments, salaries, utility bills, insurance, and loan repayments are all examples of fixed costs.Business licenses and other types of taxes are examples of fixed costs.
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what are the two general areas of specialization in accounting?
Answers
Answer:
Financial Accounting. Financial accounting is an area of accounting that deals with the recording, classifying, reporting and interpreting of a business financial performance and economic conditions to interested users ...
Managerial Accounting. Managerial Accounting is an area of accounting that deals with accumulation of financial information and preparation of reports for internal users only, like the company’s management or ...
Cost Accounting. Cost Accounting is an area of accounting that captures and accumulates manufacturing or production costs for internal use of an entity’s management, used in decision making purpose.
Explanation:
the money obtained by a company from selling corporate bonds
Answers
The money obtained by a company from selling corporate bonds is known as bond proceeds. When a company decides to raise capital through debt financing, it may issue corporate bonds to investors. These bonds represent a promise to repay the borrowed amount at a specified future date, along with periodic interest payments.
When investors purchase these corporate bonds, they provide funds to the issuing company. The amount of money received from the sale of bonds is referred to as bond proceeds. These proceeds serve as a source of capital for the company, which can be used for various purposes such as funding expansion projects, refinancing existing debt, investing in new ventures, or meeting operational expenses.
The bond proceeds are typically recorded as liabilities on the company's balance sheet, representing the company's obligation to repay the borrowed amount to bondholders. The company is required to make regular interest payments to bondholders until the maturity date when the principal amount is due.
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Complete Question : The money obtained by a company from selling corporate bonds is known as :
How should the headings of a resume be formatted so that they are clear and easy to find?
a. bold and italicized
b. capitalized and bold
c. underlined and italicized
d. capitalized and underlined
Answers
Answer:
B. capitalized and bold
Explanation:
Please mark my answer as the Brainiest!!!
Got it correct on Edge.
Attitude is your belief in your own effectiveness.
Т
F
Answers
Answer:
f
Explanation:
this mf emmanuel made me get it wrong. its false bro trust
when a wholesaler sold a product at $40 per unit, sales were 330 units per week. after a price increase of $5, however, the average number of units sold dropped to 305 per week. assuming that the demand function is linear, what price per unit will yield a maximum total revenue?
Answers
The price that maximizes revenue is $37 per unit. Given that a wholesaler sold a product at $40 per unit, sales were 330 units per week. After a price increase of $5, however, the average number of units sold dropped to 305 per week.
The formula for the demand function is Q = a - bp
WhereQ is the quantity of products sold, a is the quantity demanded at zero price, b is the slope of the demand function, and p is the price of the product.
Using the given values of price, units sold per week, and the increase in price, we can calculate the values of a and b as follows: a = 330 + 40b = -5
Substitute the above values in the demand function Q = a - bp305 = (330) - 5p
Solve for p305 = 330 - 5pp = 5.
The price per unit that will yield a maximum total revenue is $45. Since the demand function is linear, the maximum total revenue is achieved at the midpoint of the interval between the two extreme values. The price interval is $40 to $45, with midpoint being $42.5.
The total revenue function is:
R = pQ = p(a - bp)
R = p(330 + 40 - 5p)
R = 330p + 40p - 5p²
R = -5p² + 370p
The maximum revenue will be obtained at the price p that maximizes the revenue function R(p). Therefore, the maximum revenue is R(p) = -5p² + 370p.
The maximum value of this function occurs at p = -b/2a = -370/(2*-5) = 37
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j. flores owns a business and is trying to decide whether to incorporate. while researching corporations, she has determined the following facts. which of these facts is not correct?
Answers
When the rights of the owners are transferred, corporations are dissolved.
Corporations dissolve when owners transfer rights. Option D
This will be discussed in further detail below.
What do you mean by corporations?A corporation is an organization, which is often either a collection of individuals or a firm, that has been granted permission by the state to function as a single entity and is recognized as such in law for the purposes of specific activities.
To sum everything up, Charters were the first means through which early corporations were created.
These days, new companies may be formed in the majority of countries via a process called registration.
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complete question
J. Flores owns a business and is trying to decide whether to incorporate. While researching corporations, she has determined the following facts. Which one is not correct?
Corporations limit shareholder's liability.
Corporations have ease of capital accumulation.
Corporations have lack of mutual agency.
Corporations dissolve when owners transfer rights.
Corporations incur double taxation.
What are the costs and benefits of having
insurance.
Answers
Answer:
Improved Health Increases Savings Organized Consistent Check-Ups Safeguarding Finances
Explanation:
Shock Electronics sells portable heaters for $35 per unit, and the variable cost to produce them is $22. Mr. Amps estimates that the fixed costs are $97,500.
a. Compute the break-even point in units.
Answers
Break-even point in units is 7,500 unit
Given that;
Cost of each heater = $35
Variable cost of each heater = $22
Fixed cost = $97,500
Find:
Break-even point in units
Computation:
Contribution = Sales - VC
Contribution = $35 - $22
Contribution = $13
Break-even point in units = Fixed cost / Contribution
Break-even point in units = 97,500 / 7
Break-even point in units = 7,500 unit
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what are the main duties and responsibilities of a Hotel manager
Answers
Answer:
Here are some:
recruiting, training and supervising staff.
managing budgets.
maintaining statistical and financial records.
planning maintenance work, events and room bookings.
handling customer complaints and queries.
promoting and marketing the business.
Hope it helps you pls mark me brain list.
Answer:
The main duties and responsibilities of the hotel manager are as below:
Explanation:
1) Recruiting, training, and supervising staff.
2) Managing budgets.
3) Maintaining statistical and financial records.
4) Planning maintenance work, events, and room bookings.
5)Handling customer complaints and queries.
6) Promoting and marketing the business.
A nursery sells mulch by the truckload. Bark mulch sells for $b per load, and pine straw sells for $p per load. The nursery's average weekly profit from the sale of these two types of mulch can be modeled as PLp, b) 140p-3p2 - pb-4b2+120b 35 dollars. (a) How much should the nursery charge for each type of mulch to maximize the weekly profit from the sale of mulch? (Round your answers to the nearest cent.) pine straw bark mulch (b) Explain how the Determinant Test verifies that the result in part (a) gives the maximum profit. t of the second partialsmatrix is greater than mondpartialS﹀ matrix is grater than 0 and the second partial Pop is es than B 0, the Since the determinant of the prices result in a maximum profit is the maximum weekly profit from the sales of these two types of mulch? (Round your answer to the nearest dollar.)
Answers
To determine the prices that would maximize the weekly profit from the sale of mulch, we need to find the values of p and b that maximize the given profit function PL(p, b) = 140p - 3p^2 - pb - 4b^2 + 120b.
(a) To find the optimal prices, we need to take partial derivatives of the profit function with respect to p and b, and set them equal to zero:
∂PL/∂p = 140 - 6p - b = 0 ...(1)
∂PL/∂b = -p - 8b + 120 = 0 ...(2)
Solving equations (1) and (2) simultaneously will give us the optimal prices.
From equation (2), we can solve for p:
p = 120 - 8b ...(3)
Substituting this value of p into equation (1), we have:
140 - 6(120 - 8b) - b = 0
140 - 720 + 48b - b = 0
-580 + 47b = 0
47b = 580
b ≈ 12.34
Substituting the value of b back into equation (3), we can find p:
p = 120 - 8(12.34)
p ≈ 19.29
Therefore, the nursery should charge approximately $19.29 per load for pine straw and $12.34 per load for bark mulch to maximize the weekly profit from the sale of mulch.
(b) The Determinant Test, also known as the Second Partial Derivative Test, can be used to verify that the result in part (a) gives the maximum profit.
To apply the Determinant Test, we need to compute the determinant of the second partial derivative matrix:
D = ∂²PL/∂p² * ∂²PL/∂b² - (∂²PL/∂p∂b)²
Calculating the second partial derivatives:
∂²PL/∂p² = -6
∂²PL/∂b² = -8
∂²PL/∂p∂b = -1
Substituting these values into the determinant expression:
D = (-6) * (-8) - (-1)²
D = 48 - 1
D = 47
Since the determinant D is positive (47 > 0), this verifies that the result in part (a) gives the maximum profit.
(c) To determine the maximum weekly profit from the sale of mulch, we can substitute the optimal prices into the profit function:
PL(19.29, 12.34) = 140(19.29) - 3(19.29)² - (19.29)(12.34) - 4(12.34)² + 120(12.34)
≈ $2161.40
Therefore, the maximum weekly profit from the sale of mulch, rounded to the nearest dollar, is approximately $2161.
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Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Answers
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
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Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
__________________________________________________________
This is 100% right because I took the test
Go to explanation for picture with answers
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Explanation:
Here's the picture and I hope this helped!
Have a nice day!
What were the two main opposing views of Adam Smith and Karl Marx?
Answers
Answer:
Adam Smith, author of "The Wealth of Nations", was a staunch believer in the free market and private property. Karl Marx, on the other hand, believed that the free market was destroying the world and leading to the "exploitation" of the middle class and the poor.
Side effects of anabolic steroid use in males include which of the following? A. Timidity. B. Shrinkage of sex organs. C. Greatly increased hair growth. D. Increased body fat.
Answers
Answer:
It’s B 100%
Explanation:
Answer: b
Explanation:
A personal career profile form can be used to match what you know about yourself to what you know about different careers. TRUE or FALSE.
Answers
Answer:
True
Explanation:
If you look you can understand that personal helps you know yourself.
Answer:
trueeee
Explanation:
on edge
Which of the following are reasons you can claim additional allowances CHOOSE ALL THAT APPLY
A. You file as head of household if you are eligible
B. You are a single filer and plan to make a large purchase next year such as a house or car
C. You're eligible to claim the Child Tax Credit
D. You had at least the minimum amount required of child or dependent care expenses that you plan on claiming credit
Answers
Answer:
no por que. no se inglés ponlo en español
In industrial economies, the term alienation is used to describe a situation in which a worker has produced something but :__________ a) is bullied by coworkers and therefore feels like an outsider. b) cannot expect to be paid an adequate wage for the work that was done. c) sees it shipped overseas, to be used by foreign aliens. d) sees that product as belonging to someone else, rather than to the man or woman whose labor actually produced it.
Answers
When a person is said to suffer alienation in industrial economies, it means that the worker produced something but d) sees that product as belonging to someone else, rather than to the man or woman whose labor actually produced it.
What is alienation?This is a process when whereby a person makes something but is made to feel as though it isn't theirs.
In other words, they begin to look at the very thing they produced as belonging to someone else instead of them who were the ones who actually produced the good.
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Withdrawals from the partnership capital accounts are typically not used in which of the following situations? Multiple Choice To reduce the partners' capital account balances at the end of an accounting period. To record interest earned on a partner's capital balance To reward partners for work performed in the business To reduce the basic investment that has been made in the business. To record the partnership's payment of a partner's personal expense such as income tax
Answers
Withdrawals from the partnership capital accounts are typically not used to record interest earned on a partner's capital balance. This is because interest earned is considered an income or return on investment, and it is credited to the partner's capital account rather than being withdrawn.
Partners' capital account withdrawals are usually utilized for other purposes like reducing capital account balances, rewarding partners for work performed, reducing the initial investment in the business, or recording the partnership's payment of a partner's personal expenses like income tax.
Withdrawals from partnership capital accounts are typically not used to record interest earned on a partner's capital balance. When a partner's capital balance earns interest, it is considered as an income or return on investment. Instead of withdrawing this interest, it is credited to the partner's capital account, increasing the balance. This reflects the partner's ownership interest and allows for accurate tracking of their capital contribution and the return they receive on it. Withdrawals, on the other hand, are usually used for different purposes such as reducing capital account balances, rewarding partners for their work, reducing the initial investment, or recording the partnership's payment of personal expenses like income tax.
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Your mutual fund was valued at $237,500. It has lost 6% per year for the last 3 years. What is its value today?
Answers
Answer:
$197,263.7
Explanation:
The current value can be found by use of the compound interest formula. Since the asset has been losing value at 6 % per year,
the interest rate will be -6%
The formula for compound interest is FV = PV × (1+r)^n
in this case
FV= current value
PV= $237,500
r= -6% or -0.06%
n= 3 years
Fv= $237, 500 x ( 1 + (-0.06)^3
Fv=$237,500 x (0.94)^3
Fv= $237,500 x 0.830584
Fv= $197,263.7
The current value =$197,263.7
Suppose the wage rate is $25 per hour and the rent on capital is $50 per hour. the equation for the isocost line is given by:_______
Answers
Suppose the wage rate is $25 per hour and the rent on capital is $50 per hour. The equation for the isocost line is given by: C = 75LK.
Wage rates are based on output or number of hours worked. For example, sales representatives receive commissions based on the number of sales. Conversely, an hourly worker receives a fixed amount for each hour spent on the job.
The normal payout rate is the “actual” payout rate as defined in the relevant award, including overcompensation where applicable. The normal wage rate, as stated in this contract, means the hourly wage received during a normal 40-hour workweek.
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15. Answer the following questions based on the given table: Unit of commodity consumed Total utility 1 5 2 9 3 12 4 5 6 7 8 b. C. 15 15 14 12 Marginal utility Complete the given table. Draw the total and marginal utility curves from the completed table. Show the relationship between total and marginal utility curves. [2+1.5+1
Answers
From the complete table, the total utility curve increases initially, reaches a maximum point, and then starts to decrease, while the marginal utility curve decreases and eventually becomes negative.
How to solveUnit of Commodity Consumed Total Utility Marginal Utility
1 5 -
2 9 4
3 12 3
4 15 3
5 15 0
6 14 -1
7 12 -2
8 - -
Now that we have the table completed, let's discuss how to draw the total and marginal utility curves and their relationship.
Total Utility Curve:Plot the points on a graph with the "Unit of Commodity Consumed" on the x-axis and "Total Utility" on the y-axis.
Connect the points to form a curve.
Marginal Utility Curve:Plot the points on the same graph with the "Unit of Commodity Consumed" on the x-axis and "Marginal Utility" on the y-axis.
Connect the points to form a curve.
Relationship between Total Utility and Marginal Utility curves:
The total utility curve represents the cumulative satisfaction obtained from consuming the commodity. The marginal utility curve represents the additional satisfaction gained from consuming one more unit of the commodity.
The relationship between the two curves can be observed in the following ways:
When the total utility curve is increasing at a decreasing rate, the marginal utility curve is positive but decreasing.
When the total utility curve reaches its maximum point and becomes flat, the marginal utility curve is at 0 (indicating no more additional satisfaction is gained from consuming an extra unit).
When the total utility curve is decreasing, the marginal utility curve becomes negative (indicating dissatisfaction from consuming additional units).
In this case, from the completed table, we can observe that the total utility curve increases initially, reaches a maximum point, and then starts to decrease, while the marginal utility curve decreases and eventually becomes negative.
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Explain the importance of office for an organization long answer
Answers
Answer:
The answer to this question is given below in this explanation section.
Explanation:
" importance of office for an organization"
An office is the center point of organization.It is a place to perform different activities of a business organization.The office is the brain of the whole organization.The office performs a critical function such as information collection,collection,recording analyzing distribution of information and executive function such as planning,organization,policies formulation,decision making etc.
It is used by management for the purpose of planning,organizing,staffing,directing,and controlling.Office not only keep record of information but also pay the role of reliable channel of communication the information.It is required for smooth functioning of the organization.
Proper organisation facilities the intensive use of human capital.Organization stimulates creativity.By providing well defined areas of work and ensuring delegation of authority,Organization provides sufficient freedom to the managers and encourages their initiative,independent thinking and creativity.
Which of the following students is most likely to receive a merit-based scholarship?
A.
a student from a low-income family
B.
a student with a delinquency record
C.
a student from a political family
D.
a student with a high academic score
E.
a student from a middle-income family
Answers
Answer:
D
Explanation:
Compute net income for May based on the following transactions: May 1 paid $2,700 for May's rent. May 14 paid $1,700 for two weeks wages. May 15 performed $5,700 in consulting service on account. May 17 billed a customer $2,000 for services performed May 16. May 20 received $5,700 in payment for May 15 transaction. May 22 performed services and immediately collected $2,500. May 31 paid $1,000 for advertising in the local paper to take place in June.
Answers
The net income for May is $11,500.
To compute the net income for May, we need to calculate the total revenue and total expenses for the month and then subtract the total expenses from the total revenue.
Revenue:
Consulting services performed on account: $5,700
Billed customer for services performed on May 16: $2,000
Received payment for services performed on May 15: $5,700
Performed services and immediately collected payment: $2,500
Total Revenue: $5,700 + $2,000 + $5,700 + $2,500 = $16,900
Expenses:
Rent paid on May 1: $2,700
Wages paid for two weeks: $1,700
Advertising expense for June: $1,000
Total Expenses: $2,700 + $1,700 + $1,000 = $5,400
Net Income = Total Revenue - Total Expenses
Net Income = $16,900 - $5,400
Net Income = $11,500
Therefore, the net income for May is $11,500.
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If a seller paid $488 for transfer taxes at closing, and the rate was $1.00 for every $400 or fraction thereof of the sale price, what was the sale price?
Answers
If a seller paid $488 for transfer taxes at closing, and the rate was $1.00 for every $400 or fraction thereof of the sale price. The selling price was $195,200.
Given:
Tax paid = $488
Rate = $1 per $400 = 1/400
Using the formula;
Tax = rate x selling price
Selling price = tax /rate
Selling price = $488/(1/400) = $488×400 = $195200
What is selling price?
Selling price is the price that a customer pays to purchase a product or a commodity. It is a price above the cost price and includes a percentage of profit also. Cost price is the price at which the seller purchases the product or the commodity. He then adds a percentage of profit or gains to it. Marked price or list price is the price that a seller fixes after adding the required percentage of profit.To know more about selling price visit:
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if the damand for ono yos organic frozen yohurn increases then
Answers
If the demand for Ono Yos organic frozen yogurt increases, the main result would be an increase in sales and profits for the company.
In addition, it may lead to expansion opportunities, new product development, and increased brand recognition in the market. The company may also need to increase production and distribution efforts to meet the demand.
Ultimately, the increase in demand indicates a positive response from consumers towards the product and the company's commitment to organic and sustainable practices.
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