Answer:
The price of a Dinner= $6.22
Explanation:
<em>Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.</em>
To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:
Dinner cost = 100/(100-10)× 3.50= 3.89
The price of a Dinner = product cost + 60% of product cost
The price of a Dinner = 3.89 + 60%*3.89= $6.22
The price of a Dinner= $6.22
Answer: The answer is Discontinued Operation.
Explanation: Discontinued Operation in financial accounting is a term that is used to refer to part(s) of a company’s line of businesses or products that have been sold or shut down.
Discontinued operations are reported on the income statement, but separately from continuing operations.
The decision to list discontinued operations separately on the income statement is useful because it shows investors where the profits are coming from and which operations have ceased to function, especially useful when companies are about to merge.
Answer:
The expected return on a portfolio is 14.30%
Explanation:
CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.
Hence, the expected return on a portfolio is 14.30%
Answer:
B. The zero based budget requires managers to re-justify every planned expenditure every year.
Explanation:
A zero based budget is one that does not take into account historical data when it is considering the present year budget. Each departmental requirement is re-evaluated and a new amount is assigned as budget for the year.
However conventional budgets carryover the previous year's expenses as a base data point. This results in similar budgeting across years.
So the main difference between the two is that zero based budget requires managers to re-justify every planned expenditure every year.
