Answer: a percentage of the current operating overhead
Explanation: Operating overhead or operating expenses refers to the expenses incurred by an organisation for the smooth running of its business. These overheads do not increase when the company increases its operations by expanding its expenses.
On the other hand additional utilities, offering trays and additional raw material are direct costs and needs to be considered while making a decision.
Hence from the above we can conclude that current operating overhead is a non relevant cost.
Answer:
a. 1.40%
b. 8.25%
Explanation:
a. Calculation to determine the inflation premium
Using this formula
Expected IP = i - RIR
Let plug in the formula
Expected IP = 2.15% - 0.75%
Expected IP= 1.40%
Therefore the inflation premium is 1.40%
b. Calculation to determine the fair interest rate on Moore Corporation 30-year bond
Using this formula
Fair interest rate=Default risk premium +Liquidity risk premium+Maturity risk premium +T-bills are currently earning
Let Plug in the formula
Fair interest rate=2.05%+ 1.40%+ 2.65% + 2.15%
Fair interest rate= 8.25%
Therefore the fair interest rate on Moore Corporation 30-year bond is 8.25%
Answer:
a
Explanation:
Property risk is an example of a pure risk.
Pure risks are risks in which loss is the only possible outcome. It could be full loss or partial loss. Other examples of pure risks are personal and liability risks
Property risk is the risk that a person or company's property would be damaged or lost.
For example, if a building is set on fire or if a car is stolen
Answer:
It will purchase 3 cans
total consumer surplus 0.70
Explanation:
the market price is 0.55
It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.
<u>consumer surplus:</u>
difference between the amounts he was willing to pay for each unit and the market price:
first can 0.95 - 0.55 = 0.40
second can 0.80 - 0.55 = 0.25
third can 0.60 - 0.55 = 0.05
total consumer surplus 0.70
Answer:
No-shows in Hotel Reservations
Sample mean
= Sum of the samples divided by the number
= (18 + 16 + 16 + 16 + 14 + 18 + 16 + 18 + 14 + 19)/10 = 16.5
Explanation:
In mathematics and statistics, the arithmetic mean, or simply the mean or average is the sum of a collection of numbers divided by the count of numbers in the collection.
A sample mean therefore is the average of the sum of a collection of samples divided by the count of numbers in the collection. Simply, the sample mean is the average of all the measurements in the sample.
