Answer:
Without financial stability, and office can not function properly.
Explanation:
Ex:
unpaid light bill = dysfunctional office
I guess the correct answer is microeconomic analysis.
GeeGee’s is a community-based bakery known for its scrumptious tea cakes. The recipe calls for expensive spices imported from Asia. Recently the cost of these spices has risen dramatically, leading GeeGee’s to consider increasing its prices. In order to analyze how this change would affect consumer choices, GG’s management could perform a microeconomic analysis.
<span>We know from Capital asset pricing model that expected return (ER) of any stock can be calculated as
ER = Rf + beta* ( Rm - Rf)
where, Rf is risk free rate
Rm is expected return on market. Therefore,
0.128 = Rf + 1.19* (0.118 - Rf)
which is equivalent to
0.19 Rf = 0.140 - 0.128
Or, risk free rate, Rf = 0.0654 ~ 6.54%</span>
Answer:
minimum transfer price $12
Explanation:
The minimum transfer price should be the cost to produce the additional units to transfer. AKA <em>marginal cost</em>
In this case, the division faces $12 of variable cost to produce a single unit.
As long as the units to transfer are within the relevant range of the current capacity the fixed cost are irrelevant for the transfer price as these are sunk cost (already incurred)
