<h2>Hey there! </h2>
<h2>I guess the correct option is:</h2>
<h3>"C. Medium term" </h3>
<h2>Mark me as a brain list </h2>
Break-even analysis is the process used to determine the profitability of a product at various levels of sales.
We can use the formula for binomial
distribution in calculating for the probability that exactly two customers out
five will default on their payments.
The formula is:
P(r) = nCr*q^(n-r)*p^r
Where:
n = sample size, 5
r = successes, 2
q = failure rate, 96% = 0.96
r = success rate, 4% = 0.04
Substituting on the formula:
P = 5C2*0.96^3*0.04^2
<span>P = 0.0142 or 1.42%</span>
Answer:
Option C. GNP
Explanation:
The business cost and the price of the product is of-course get affected by the increase or decrease in the interest rate. So both of these options are the answer to the question.
The GNP measures the value of the products and services that is owned by the country's residents which also includes the production output in warehouse, individual product holdings, etc. for the year. So GNP is least affected by the interest rate changes.
Though the value of the major investments in the foreign country can not be affected easily. Other factors that also effect the earnings from the abroad are profitability, dividend policy, taxes, etc that affects the earnings from the foreign countries. However the small investments would definitely be affected by the investments made in the foreign stock exchange with the change in the interest rate in the home country. So this change in the interest rate would definitely affect the earnings coming from abroad as the investment in foreign countries has been lessened. So can have considerable affect on the earnings coming from abroad.
The number of parts used for the wheels is,
(300,000 wheels) x (2 parts/wheel) = 600,000
For the seats,
(600,000 seats) x (3 parts/seat) = 1,800,00
From the calculation above, the ratio of wheels to total number of parts is 0.25 which means that the overhead allocated for the wheels should be equal to $165,000. The rest of the money should be for Sam, totaling to $495,000.
