Answer:
The correct answer is housing.
Explanation:
A family spends 35 percent of its income on housing, 20 percent on travel-related expenses, 10 percent on utilities, 25 percent on health care, and 5 percent on miscellaneous items.
The item which has the largest share in the budget will be most responsive to change in the price. In other words, we can say that the item that has the largest share in the budget will be most price elastic.
This is because a change in the price of such a product will cause a significant impact on the consumer's budget.
Here, housing has the highest share i.e. 35% in the budget so it will be most price elastic.
Answer:
$396
Explanation:
Calculation for the contribution margin per unit sold for recurring sales
Using this formula
Contribution margin per unit = Normal Selling price per unit - (Direct material +Direct labor+Variable factory overhead)-Variable selling & administrative costs
Let plug in the formula
Contribution margin per unit = $750 - ($120+ $150 + $60) - $24
Contribution margin per unit = $750 - $330 - $24
Contribution margin per unit= $396
Therefore the contribution margin per unit sold for recurring sales will be $396
The correct answer is A) Seasonality.
A Boston Hallmark store is preparing a budget for the next year and needs to forecast sales. The store notices variation in sales around holidays. The pattern that describes the data to be forecasted is "Seasonality."
This sales term means that during a specific season, the volume of sales increases due to the high demand on the part of the consumers. In this case, when Christmas comes, the Boston store has data that proves that there is a considerable positive variation during the Christmas season and that is why this variation must be included in the budget and the forecasting of sales in that season.
Answer:
a. 11.2%
b. 8.74%
c. Yes
Explanation:
The computation is shown below:
a. The cost of equity capital is
Cost of equity capital = Risk free rate of return + Beta × Market risk premium
= 4% + 0.9 × 8%
= 4% + 7.2%
= 11.2%
b. Now the WACC is
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)
= (0.3 × 5%) × ( 1 - 40%) + (0.7 × 11.2%)
= 0.9% + 7.84%
= 8.74%
c. Yes the project should be accepted as the internal rate of return is greater than the cost of equity capital
Answer:
are higher than average, because the job sector is rapidly growing.
Explanation:
Compared to other industries, salaries for technology-related jobs: "are higher than average, because the job sector is rapidly growing."
This is evident in the fact that virtually every industry makes use of technological equipment or operations to enhance their services or manufacturing products.
Hence, with the increase in job markets or rapid growth in the job sector, employers are trying to acquire and retain the best employees in the technology-related industry by paying more than the average.
