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equal to $9.5. Calculate the effective annual rate of interest.
Type the amount in the account: $nothing
(Round to the nearest dollar.)
Type the amount of interest earned: $nothing
(Round to the nearest dollar.)
Calculate the break-even value using the marginal income ratio.
1.2 The sales manager proposes a R2 per unit reduction in selling price with the
expectation that this would increase sales by 2 000 units. Is this a good idea?
Motivate your answer.
(4 marks)
1.3 Determine the selling price per unit if a net profit of R486 000 is desired.
INFORMATION
The following forecasts for January 2021 were provided by Walton's Manufacturers:
Sales (36 000 units) ----------------------------------------R1080 000
Direct materials cost per unit ----------------------------R8
Direct labour cost per unit ---------------------------------R5
Variable manufacturing overhead costs per unit ----------R2
Fixed manufacturing overheads -------------------------------R150 000
Fixed marketing and administrative costs--------------------R120 000
Sales commission ------------------------------R10% OF SALES
Conifers Ltd, a tree relocation company, follows a stable plus special dividend policy. The company recently (2020) had earnings available to common shareholders of R500m on sales of R2b and has 250m shares outstanding. The company maintains a stable pay-out ratio of 5% and issues special dividends whenever its net profit margin exceeds 10%. Special dividends amount to all profits exceeding 50% of the amount after the stable dividend had been deducted.
Required:
Determine the total dividend that Conifers Ltd will pay per share in 2020.
schedule, showing the interest component of every payment and the outstanding balance.
being due after two years. The amount of subsequent payments decreases by $30 every halfyear. On the basis of an interest rate of 5% per half year, find the present value of the annuity
amount of each subsequence payment decreases by $300 each year. Find the present value
of the annuity on the basis of an interest rate of 5% per annum.
year. The bank will then make six equal monthly payments to you, with its first payment due
one month after the last payment you make to the bank. Compute the size of each monthly
payment made by the bank, assuming a nominal interest rate of 4% p.a. payable monthly
