**Answer:**

operating Income = Sales – Variable Costs – Fixed Costs

A CVP analysis is used to determine the sales volume required to achieve a specified profit level. Therefore, the analysis reveals the break-even point where the sales volume yields a net operating income of zero and the sales cutoff amount that generates the first dollar of profit.

Cost-volume profit analysis is an essential tool used to guide managerial, financial and investment decisions.

COST-VOLUME PROFIT ANALYSIS

Contribution Margin and Contribution Margin Percentage

The first step required to perform a CVP analysis is to display the revenue and expense line items in a Contribution Margin Income Statement and compute the Contribution Margin Ratio.

**Answer:**

Answer: To protect inner layers

**Explanation:**

Just took the test and it told me the correct answer

<span>The Push Strategy is a type of marketing strategy that aims to create demand by directly selling products to customers via distribution channels. This strategy is common to new products who are not yet known to the market. A common example of this is trade promotion, this happens when retailers are given incentives in exchange of purchasing and introducing a product to the costumers.</span>

**Answer:**

Home Equity Loan is truly cheaper

**Explanation:**

Data provided in the question:

APR of the loan taken = 6.9% = 0.069

Interest rate on Loan for boat per annum

=

n = number of periods = 12 [when compounded monthly]

t = time = 1 year = 12 months

thus,

Annual Interest rate on Loan for boat =

= 7.12%

APR on home equity loan = 7.9% = 0.079

Annual Interest rate on Home Equity Loan =

= 8.51%

Tax saving on interest paid @ 25% = 0.25 × Annual Interest rate

= 0.25 × 8.51

= 2.1275% ≈ 2.13%

Therefore,

Total Interest cost on home equity loan

= Annual Interest rate - Tax saving on interest paid

= 8.51% - 2.13%

= 6.38%

Hence,

**Home Equity Loan is truly cheaper**