Jansung Company manufactures 5,000 telephones per year. The full manufacturing costs per telephone are as follows: Direct materials $ 2 Direct labor 8 Variable manufacturing overhead 5 Average fixed manufacturing overhead 5 Total $20 Telecom America has offered to sell Jansung Company 5,000 telephones for $20 per unit. If Jansung Company accepts the offer, $12,500 of fixed overhead will be eliminated. Applying differential analysis to the situation, should Jansung Company make or buy the phones

Calculate the required rate of return for an asset that has a beta of 1.73, given a risk-free rate of 5.3% and a market return of 9.9%. b. if investors have become more risk-averse due to recent geopolitical events, and the market return rises to 12.7%, what is the required rate of return for the same asset?

Your take on decision making process

Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.