Answer:
25%
Explanation:
New contribution margin = Old contribution margin + Increase
= 135,000 + 30,000
= 165,000
Net Income = Contribution margin - Total fixed expense
= $165,000 - $90,000
= $75,000
ROI = Net income ÷ Average operating assets
= 75,000 ÷ 300,000
= 25%
Answer:
D. Currency exchange risk
Explanation:
If you must deal with only domestic long term investments, then you should not worry about the currency exchange risk. The currency exchange risk is extremely relevant and important when you are dealing with investments in foreign countries. The currency exchange risk refers to risks associated with the US dollar depreciating or appreciating against other foreign currencies.
Answer:
c. 25 percent.
Explanation:
The computation of the reserve requirement percentage is shown below:
Given that
Deposits made = $8,000
Loans = $6,000
So the required reserve is
= deposits made - loans
= $8,000 - $6,000
= $2,000
Now the required reserve is
= $2,000 ÷ $8,000
= 25%
Hence, the correct option is c. 25 percent
We simply applied the above formula so that the correct value could come
And, the same is to be considered