She will be indifferent between these plans if her rate of time discount is equals 21 percent. If her rate of time discount is less than this amount she will opt for a plan B.
<h3>What is discount rate?</h3>
The bank rate, sometimes known as the discount rate in American English, is the interest rate charged by a central bank on its loans and advances to commercial banks.
In a discounted cash flow (DCF) analysis, the discount rate is the interest rate used to calculate the present value of future cash flows. This helps establish whether the future cash flows from a project or investment will be worth more than the initial capital outlay required to support the project or investment.
The discount rate is an essential measure of an economy's credit situation.
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Answer:
B. contributes towards variable costs
Explanation:
We know that,
Variable expense ratio = Variable expense ÷ Sales revenue.
From the above formula, we can understand that the Variable expense ratio comes from dividing variable expenses by sales.
Therefore, option B is correct. So the variable expense ratio cannot contribute towards contribution margin, fixed costs, and product costs.
A company has a tool to monitor its progress. This tool analyzes the company's finances and its strategy. The executives use this tool to understand how the firm responds to shareholders, how customers view the firm, what processes to focus on to successfully use its competitive advantage, and how it can use innovation to improve its performance. <u>-The tool used is the Financial Ratio </u>
Explanation:
Financial ratios are used to understand the relationships between the various items of a financial statement. The financial ratios analysis the historical data of a company and it is being used by the management to understand the internal strength and weaknesses of the company and to analyse the financial performance in the near future.the shareholders use these ratios to compare companies in the same industry.
A company has a tool to monitor its progress. This tool analyzes the company's finances and its strategy. The executives use this tool to understand how the firm responds to shareholders, how customers view the firm, what processes to focus on to successfully use its competitive advantage, and how it can use innovation to improve its performance. <u>-The tool used is the Financial Ratio </u>