Answer:
50%
Explanation:
Contribution margin is used to determine the profitability of a product. it is price less variable cost
Contribution margin ratio = (price - variable costs) / price
variable cost = 80 - 20 = 60
price = 120
(120 - 60) / 120 = 50%
Answer:
D) Usage
Explanation:
Usage barriers or obstacles to use are basically reasons why a customer will cease purchasing a good or service, or might even return a purchased good just after purchasing it. Sometimes enthusiastic customers may falsely believe that a product is easy to handle and use, while it's not, e.g. a Sedgeway that initially had very high sales but then they plummeted. Usage barriers result in high customer churn.
In this case, some users might actually believe that eating a small amount for one day and exercising for a couple of hours will radically change their body structure. The bad thing is that after a few days they will realize that it was all a lie, and they will get either frustrated or mad.
Answer:
11.18%
Explanation:
The firm average cost of equity is shown below:
Under Dividend growth, the common stock is
= dividend growth rate + dividend yield
= 3.75% + 4.53%
= 8.28%
Under CAPM, the common stock is
= Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)
=3.1% + 1.15 × (12.65% - 3.1%)
= 14.08%
Now the average cost of equity of the firm is
= (8.28% + 14.08%) ÷ 2
= 11.18%
Answer: Cost plus contact
Explanation:
A cost-plus contract is a form of contract whereby the contractor is paid for all of its allowed expenses including additional payments in order to allow for a profit.
A cost plus contract is usually used when the quality, delivery time and performance is of more importance than the cost. In cost plus contract, the final cost may be smaller than the fixed cost because the contractors don't usually inflate price and also as a result of lesser price competition.
A cost price contract also gives more room for control and oversight over a contractors work and is also flexible which gives room for specification changes.
