High return on an investment is associated with high risks.
the bigger amount you give for an investment, the bigger possibility that you can have bigger return however the higher risk that you can loss a big amount of money also.
Answer:
<em>Gather all your company's existing information, including data on your business's revenue, operating budget, expansion plans, and so on. Integrate your goals, data, and financial needs into a concise, clean presentation. Research thoroughly any investor you plan on presenting your investment proposal to.</em>
Answer:
Effect on income= $4,875 increase
Explanation:
Giving the following formula:
Production costs:
Direct materials$2.55
Direct labor 7.85
Variable manufacturing overhead 6.95
Total= $17.35
Special offer:
Selling price= $26.9
Number of units= 4,300
Increase in variable cost= $3.3
Increase in fixed costs= $22,000
<u>Because it is a special offer and there is unused capacity, we will take into account only the incremental fixed costs.</u>
<u></u>
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= incremental contribution margin - incremental fixed costs
Effect on income= 4,300*(26.9 - 17.35 - 3.3) - 22,000
Effect on income= $4,875 increase
In the federal budget, national parks and federal prisons are examples of mandatory spending.
<h3>What is meant by mandatory spending?</h3>
All spending that does not occur through appropriations legislation is referred to as mandatory spending. Spending that is necessary includes payments for entitlement programs like Social Security and Medicare as well as required interest payments on the nation's debt. About two-thirds of all federal spending is accounted for through mandatory spending.
Major budgetary trends are significantly influenced by mandatory spending. As more people become eligible for required programs like unemployment insurance and income security programs during economic downturns, government revenues decline and spending rises, leading to an increase in deficits or a decrease in surpluses.
Spending on entitlement programs and a few other payments to individuals, companies, and state and local governments are examples of mandatory or direct spending. Ordinarily, mandatory spending is not determined by annual appropriation acts but rather by statutory requirements.
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