Answer:
d) partly a variable cost and partly a fixed cost.
Explanation:
CVP income statement is also known as cost volume profit income statement, it is generally a product of CVP analysis and it include five elements:
- Price of products.
- Volume of activity.
- Variable cost per unit.
- Total fixed cost.
- Mix of product sold.
CVP analysis are conducted to know how changes in cost and volume would impact company´s operating income and net income. It require all the cost of company should be segregated into variable and fixed cost. It also calculate contribution margin, which help to identify the profit of company before deducting fixed cost.
I believe that the answer you arte looking for is A. True
Answer:
Option (b) is correct.
Explanation:
At selling price = $1 and No. of units sold = 75 cookies,
Total revenue = selling price × No. of units sold
= $1 × 75 cookies
= $75
At selling price = $0.50 and No. of units sold = 200 cookies,
Total revenue = selling price × No. of units sold
= $0.50 × 200 cookies
= $100
Therefore, there is a rise in the total revenue from $75 to $100 and hence, price elasticity of demand for sugar cookies is elastic.
Answer: Nominal interest rate.
Explanation:
Nominal interest rate is the interest rate before inflation is taken into account.
Nominal interest rate is also the advertised or interest rate stated on a loan, without adding any other fees or compounding the interest.
The nominal interest rate is quoted on bonds, loans etc. It is the advertised rate without taking into cognisance inflation, inflation, taxation and compounding interest.
Answer:
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
Explanation:
To calculate the standard deviation of the investment, we must first calculate the expected or mean return of the investment. The expected or mean return can be calculated as follows,
r = pA * rA + pB * rB + ... + pN * rN
Where,
- pA, pB, ... represents the probability of state occurrence
- rA, rB, ... represents return A, return B and so on under each state
r = 0.2 * 0.16 + 0.4 * 0.12 + 0.2 * 0.05 + 0.2 * -0.05
r = 0.08 or 8%
The formula to calculate the standard deviation of a stock/investment is as follows,
SD = √pA * (rA - r)² + pB * (rB - r)² + ... + pN * (rN - r)²
SD = √0.2 * (0.16 - 0.08)² + 0.4 * (0.12 - 0.08)² + 0.2 * (0.05 - 0.08)² + 0.2 * (-0.05 - 0.08)²
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
