Answer:
Correct answer is B, $2,500
Explanation:
To get profit, First, deduct variable cost from sales for the period to get the contribution margin. Finally, Deduct fixed cost from contibution margin to get the profit for the period.
Computation would be:
Sales (1,000 x 7) $7,000
Less: Variable cost (1,000 x 3) <u>$3,000</u>
Contribution margin $4,000
Less: Fixed cost (1,000 x 1.5) <u>$1,500</u>
Profit $2,500
*<em>It can also be done by deducting variable cost from the selling price to get the unit contribution margin then deduct the fixed cost from the unit contribution margin and from it multiply the output sold to get the profit.</em>
Answer:
Investing all of your money into 1-2 funds so that you can focus on making money through compound interest.
Explanation:
Not enough info given about the situation but the best guess would be the price would decrees.
When the demand for a product drops (i.e being banned) the price drops
Answer:
c. A new technology such as the Internet has just been introduced, and it increases investment opportunities.
Explanation:
Nominal interest rate is the sum of real interest rate and expected inflation rate.
If expected inflation rate falls, the nominal interest rate also falls.
During a recession, people are more unwilling to borrow funds ,this pushes interest rate down.
If investment opportunities increases, the demand for funds would increase and nominal interest rate would increase too.
I hope my answer helps you
The disadvantage of related diversification is that firms are able to look for promising investment opportunities for future profit, which means option B is the right answer.
Diversification is the act of inducing more branches of a business to expand it in the preexisting operations in areas where it is not present. Related diversification enhances shareholder value by taking control over cross-business strategic fits. It enables transfer of skills and capabilities from one business to another. It causes a combination of new resources to produce batter capacities and capability. Related diversification can allow a firm to share and transfer critical success factors across different businesses leading to efficiencies in resource allocation. The disadvantages are often too optimistic and are harder to manage. Also, several significant barriers are present which actually capitalize on shared synergies and related diversification is often overvalued.
Learn more about Diversification at:
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