Answer:
The profit margin controllable by the Central Valley segment manager is: $ 95,000.
Explanation:
Only items directly controllable by the Manager should be included in the divisional financial performance measure.
<u>Central Valley Division</u>
Revenues $ 405,000
Less Variable Costs :
Variable operating expenses ($ 230,000)
Controllable Contribution $ 175,000
Less Controllable fixed expenses ($80,000)
Controllable Profit $ 95,000
Answer:
18 years
Explanation:
Given that;
P= $23,000
A= $76,300
r= 6.7%
From
A = P(1 + r/100)^n
76,300 = 23,000 (1 + 0.067)^n
3.3 = (1.067)^n
Taking logarithm of both sides
log 3.3 = log (1.067)^n
log 3.3 = nlog(1.067)
n= log 3.3/log 1.067
n= 0.5185/0.0282
n= 18 years ( to the nearest year)
Shares are traded on a stock exchange
