Answer:
The operating income master budget variance 6687 Unfav
Explanation:
Devin Company
Actual Vs. Budget Performance Report
For the year
Actual Master Master Budget
Performance budget Variance
Sales 150,298 155,842 5544 Unfavorable
Variable Costs 65,548 63,937 1611 Unfav
Fixed Costs 12,007 12,475 468 Fav
Operating Income 72743 79430 6687 Unfav
The operating income master budget variance is unfavorable because actual operating income is less than the budget operating income .
When the actual sales revenue is less than the budgeted revenues the variance is unfavorable.
When the actual costs are more than the budgeted costs the variance is unfavorable, and favorable when the actual costs are less than the budgeted costs.
Answer and Explanation:
a)
If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000
And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000
profits=$300,000
b)
If you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.
So profits = 1000*90 + 1000*160=$250,000
c)
for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.
So everyone will buy a bundle of 1 X and 1 Y.
profits = 150*3000= $450,000
d)
If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000
Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000
and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000
total profits =$460,000
Answer:
C. Helps balance the positive and negative consequences of a decision.
Explanation:
Answer:
The equilibrium expected rate of return is higher for Kaskin than for Quinn.
Explanation:
Option A “The equilibrium expected rate of return is higher for Kaskin than for Quinn” is more accurate because the expected return is calculated by multiplying the risk premium with beta value and then adding with risk-free return. However, if the beta value is high, then the magnitude after multiplying with the risk premium will be high. Moreover, is magnitude will be added to risk-free return to find the expected return. Thus, it can be seen that Kaskin has high beta 1.2 as compared to Quinn’s beta value 0.6. So, the Kaskin has a higher expected return.
