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djyliett [7]
3 years ago
7

Llywelyn, Inc. reports the following information for​ July: Sales Revenue $ 1 comma 000 comma 000 Variable Costs 200 comma 000 O

perating Income 380 comma 000 What is the total fixed cost using variable​ costing? A. $ 420 comma 000 B. $ 800 comma 000 C. $ 180 comma 000 D. $ 580 comma 000
Business
1 answer:
trapecia [35]3 years ago
6 0

Answer:

A. $ 420,000

Explanation:

We have to find the missing information

Sales revenues            1,000,000

variable cost              <u>    (200,000)</u>

Contribution Margin       800,000

Fixed Cost                <u>            X         </u>

Operating Income          380,000

Contribution margin - operating income = fixed cost

$800,000 - $380,000 = fixed cost

fixed cost =   $420,000

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Answer:

a. emigrate

b. more

Explanation:

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Answer:

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Explanation:

1) A floating rate bond has a shorter duration; almost zero and it has lower sensitivity to interest rates compared to a fixed rate bond.This means that the former has a lower interest rate risk. Investors tend to demand floating rate bonds when they expect future interest rates to rise because their prices would be close to their par values as their interest rates would also increase. On the other hand, fixed bond's interest rates are inversely related to their prices.

2)

For an issuing company, borrowing money floating rates terms could be riskier for cashflow management purposes . Every time interest rates increases, it means that the company would pay higher interests to lenders which could hurt its profitability. The fluctuations could also negatively affect future financial planning unlike issuing fixed rate bonds whose coupon payments are constant hence decreasing the volatility of earnings.

8 0
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