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
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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