Answer:
c) $ 24,200
Explanation:
Computation of Total Period costs
Fixed selling and Administrative expenses $ 8,800
Variable Selling and Administrative costs
$ 7 per unit * 2,200 units sold <u>$ 15,400</u>
Total period costs $ 24,200
The fixed manufacturing overhead is part of manufacturing costs so not considered.
The variable selling and administrative costs are based on units sold and not units produced.
Answer:
Incremental cost
Explanation:
The Incremental cost is the cost that is to be incurred for producing an additional unit of product
Here the company considered a new project which cost $19,000 so this is an example of an incremental cost as the additional cost is incurred for producing additional units
Therefore the given situation represents the incremental cost
Answer:
B) The yield on a 5-year Treasury bond must exceed that on a 2-year Treasury bond.
Explanation:
The yield on 5-year Treasury bond must be higher than a 2-year Treasury bond. This is because the expected inflation rate after 2-years will be constant at 4% and there is also a maturity risk premium which increase with the increase in maturity of the bond. Therefore, the correct answer is option B.
Answer:
The answer is C.
Explanation:
Call option is a financial contract that gives the holder(holder of call option) the right but not the obligation to buy an asset(bond, equity etc.). The holder of call option expects the underlying assets to increase in future.
The excercise price or strike price is $100
The premium(the price paid by the buyer to the seller to obtain this right) is $5
The total is $105($100 + $5)
So for profit to be recorded, this must be over $105 which is from $106.
Answer:
Promotion
Explanation:
Promotion is of the element of marketing mix. Promotion is a marketing technique of making consumers aware about the product offered by the organization.
Various promotional tools are used for this purpose such as advertisements through print, radio and television. It is important that they propagate actual and bias fee information to the consumers. It is not ethical to misinform consumers.
In this case, ethical issue deals with promotion of the company as it has no evidence regarding the claim they are making related to the product that it reduces cholesterol.
