If Rolo Watches plans to sells 300 watches at $48 per watch and has variable costs of $20 per watch and fixed costs of $4,000, what is the projected profit? A) $4,000 B) $4,400 C) $8,400 D) $12,000

Profit= $4,400

Explanation:

Giving the following information:

Sales= 300 units

Selling price= $48

Unitary variable cost= $20

Fixed cost= $4,000

First, we need to calculate the contribution margin:

Contribution margin= 48 - 20= $28 per unit

Now, the projected profit:

Profit= 300*28 - 4,000

Profit= $4,400

An amount of $1,457.35 from the sale of Class A, while $1,449.46 will be received from the sale of Class B.

Explanation:

For Class A shares

Amount to receive from A sales = Invested amount × (1 + r)^n × (1 - growth fluctuation difference)

Where;

r = Portfolio rate of return = 11%, or 0.11

n = number of years = 4

Therefore, we have:

Amount to receive from Class A sale = $1,000 × (1 + 0.11)^4 × (1 - (0.05 - 0.01)) =  $1,457.35

For Class B

Amount to receive from Class B sale = Invested amount × (1 + f)^n × (1 - falling rate)

Where;

f = r - annual fees = 0.11 - 0.01 = 0.10

Therefore, we have:

Amount to receive from Class B sale = $1,000 × (1 + 0.10)^4 × (1 - 0.01) = $1,449.46

Therefore, $1,457.35 from the sale of Class A, while $1,449.46 will be received from the sale of Class B.