Answer:
The low cost of labor in other countries around the globe is a factor that business must consider because they are impacted by:
the high cost of domestic labor.
Explanation:
An entity's ability to be globally competitive in the face of foreign manufacturers with low cost of labor is not helped by the high cost of domestic labor. The cost of direct labor forms part of the computations for the cost of a product and its pricing. Cheaper imports are more affordable to consumers than local products, thus causing consumers to prefer imports to domestic products.
Answer:
The beta of stock T is 1.82
Explanation:
The portfolio beta is made up of the weighted average of the individual stock betas in the portfolio.
The formula for portfolio beta is,
Portfolio beta = wA * beta of A + wB * beta of B + ... + wX * beta of X
The weight of stock T in the portfolio is = 1 - (0.11 + 0.56) = 0.33 or 33%
Let beta of Stock T be x. The beta of Stock T is:
1.47 = 0.11 * 0.84 + 0.56 * 1.39 + 0.33 * x
1.47 = 0.0924 + 0.7784 + 0.33x
1.47 - 0.0924 - 0.7784 = 0.33x
0.5992 / 0.33 = x
x = 1.815 rounded off to 1.82
Answer:
a. 116.9 and the inflation rate was 16.9%
Explanation:
<u>Definition</u>
Consumer Price Index (CPI) is a statistical measure that is constructed using a weighted average market basket of consumer goods and services produced by a household.
CPI = (Cost of market basket ₓ / Cost of market basket ₓ₁) * 100
where x = present year(2014) and x1 = base year(2012)
CPI = (90/77) * 100
CPI = 116.88
CPI = 116.9 (to 1 decimal place)
Inflation =<u>Current year basket cost - Base year basket cost</u> * 100
Base year basket cost
Inflation = <u>90-77</u> * 100
77
Inflation = 16.88
Inflation = 16.9% ( to 1 decimal place)
I think it’s an Individualist society
Finland, with a score of 63 is an Individualist society. This means there is a high preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only.
Answer:
fixed costs = $255,000
variable costs = (15,000 / 17,000) x $216,750 = $191,250
Explanation:
A flexible budget is prepared in order to compare how budgeted revenues and costs actually worked out. In other words, if actual revenues and costs were similar to the budget previously prepared. A flexible budget adjusts actual results and helps management control how efficient the company was in following their budget. That is why a flexible budget is done after the budgeted period is over.
Fixed costs should not change (that is why they are fixed), but variable costs should change if the actual output was different than the budgeted output.
