Answer:
forward rates are determined by investors' expectations of future interest rates.
Explanation:
The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectations of future interest rates. It suggests that the predicted holding period rate of return of a bond of "x" number of time is equal to the short-term interest rate irrespective of its maturity.
The Expectations theory gives us the opportunity to predict the future outcome of short-term interest rates based on current long-term interest rates.
Answer:
The projected Net Income is $70,784
Explanation:
The Pro- forma income Statement
Working Note:
Variable cost = Sales × 44%
= $585,000 × 44%
= $257,400
EBT (Earnings before Tax) = Sales - Variable cost - fixed cost - depreciation
= $585,000 - $257,400 - $187,000 - $51,000
= $89,600
Net Income = EBT × Tax rate
= $89,600 × 21%
= $70,784
Answer:
The use of budgets in controlling operations
Explanation:
Budgetary control
The efficiency with which the manger utilizes the budget to control and monitor the costs and operations in a given period of time .
uses the budget as the controlling operations .
Steps of Budgetary Control:
a. Establish a plan or a target of the performance , which coordinates all the activities of the business .
b. Record the actual performance .
c. Compare the actual performance with the planned .
d. Calculate the differences , variances and the reasons .
e. Act immediately , if necessary, to remedy the situation.
Answer:
b. decrease by $1,000
Explanation:
There is an option below the question ask for details
For computing the profit or loss, first we have to determine the variable cost per unit which is shown below:
= Total variable cost ÷ Number of cases sold
= $144,000 ÷ 9,000 cases
= $16 per cases
The total variable cost would be
= $126,000 + $18,000
= $144,000
And, profit per case is $15
So, the loss per case would be
= $15 per case - $16 per case
= -$1 per case
So, the total loss would be
= 1,000 cases × $1
= $1,000 decrease
Answer:
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