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White raven [17]
3 years ago
10

Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.

21 -0.08 Normal 0.55 0.16 Boom 0.24 0.25 Required: Calculate the expected return.
Business
1 answer:
ella [17]3 years ago
4 0

Answer:

13.12%

Explanation:

The computation of the expected return is shown below:

= (Expected return of the recession × weightage of recession) + (expected return of the normal economy × weightage of normal economy) + (expected return of the boom × weightage of boom)

= (-0.08 × 0.21) + (0.16 × 0.55) + (0.25 × 0.24)  

= - 0.0168 + 0.088 + 0.06

= 13.12%

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5 0
1 year ago
Southwest U's campus book store sells course packs for $14 each. The variable cost per pack is $12, and at current annual sales
Mumz [18]

Answer:

$23,000

Explanation:

current annual sales = 49,000 packs

Selling price of course packs = $14 each

variable cost per pack = $12

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4 0
3 years ago
Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of
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Answer:

Total fixed costs= $150

Explanation:

Giving the following information:

Parker's only overhead is a storage unit for the inventory that costs $125 a month and a $25 monthly fee for website hosting.

<u>A cost is categorized as fixed because it does not vary with production (in relevant ranges).</u>

In this case, the only two cost that is fixed is the storage and website hosting.

Total fixed costs= 125 + 25= $150

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Answer:

B. Kim will win, because the bonus is a reward for work they have already performed, which is past consideration and cannot be used to create a contract.

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