Answer:
$12
Explanation:
Contribution margin is the net of sale amount and variable cost. It is the amount of return available to recover the fixed cost and make profit from after that for the business.
Selling price = $30
Only Variable manufacturing cost and Selling commission is consider as variable costs for the calculation of contribution margin because $4 per unit administrative cost is calculated on the current level of activities, it will not remains the same.
Variable manufacturing cost = $15
Selling commission = $30 x 10% = $3 per unit
Total Variable cost = $15 + $3 = $18
Contribution margin per unit = Selling price - Variable costs = $30 - $18 = $12
Answer:
E.In equilibrium, the expected return on Stock A will be greater than that on B.
Explanation:Beta is a measure used in the stock marketing to describe how volatile a stock is compared the the overall market. A stock with a Beta greater than one signifies that a share is more volatile than the overall market, while a Beta less than one signifies that the market is more volatile than the stock.
IN EQUILIBRIUM, STOCK A WITH A BETA GREATER THAN ONE WILL BE MORE PROFITABLE AND GENERATE MORE INCOME THAN STOCK B WHICH HAS A LOWER BETA THAT IS LESS THAN ONE.
Fixed expenses are expenses that stay the same for a person or a business. An example of a fixed expense is rent/mortgage. This expense doesn't change if you are only usig the building for 2 weeks or the entire month, its a set rate. A variable expense is an expense that changes like an electric bill, it varies based on the month and usage. When you budget, you can easily budget for your fixed expenses but you need to allow some room in your budget for expenses that change.
