The high and low levels of activity are 90,000 miles in April and 50,000 miles in February. The costs at these two levels are $195,000 and $120,000, re-spectively. The difference in costs is $75,000 ($195000-120000), and the difference in miles is 40,000 (90000-50000). Therefore, variable cost per unit is $1.875computed as follows.
75000÷40000=1.875
Determine the fixed costs by subtracting the total variable costs at either the high or the low activity level from the total cost at that activity level
Variable cost=1.875×50,000=93,750
fixed cost=120,000−93,750=26,250
A Small business is defined as a business that is independently owned and operated and is not dominant in its field of operations.
Answer:
The correct answer is (c)
Explanation:
Business Corporation is a separate business entity that is controlled by elected group members know as the board of directors. They are responsible for business activities and they usually seek for long term profits. This separate entity is controlled by shareholders. Overall, they aim for a broader mission without maximising shareholders profit. Business corporations usually reinvest dividends and profits to improve and expand.
Answer: 1.50
Explanation:
Isabel's portfolio beta is a weighted average of the individual stock betas.
= Weight of stock A * Stock A beta + Weight of stock B * Stock B beta + Weight of stock n * Stock n beta
= (20% * 0.4) + (30% * 1.2) + ( 25% * 2.5) + (25% * 1.75)
= 0.08 + 0.36 + 0.625 + 0.4375
= 1.5025
= 1.50
Answer:
Expand
Explanation:
Since future market demand is not ceratin so company use to invest portion of fund to determine demand of product and opportunity in market. if they find that there is demand and opportunity in market then they invest large amount.
This process is called real option to Expand the business.
Hence, option (expand) is correct answer.
