Answer:
B) As volume increases variable cost per unit increases.
Explanation:
As the volume of production and output increases, variable costs will also increase because the variable cost of production is a constant amount per unit produced. Alternatively , when fewer products are produced, the variable costs connected with production will as a result decrease
Variable costs example include direct Labour and material costs
So if the company decides to increase its output (production of product) from example 50 units to 100 units, then more materials and direct Labour are needed
Answer:
y
Explanation:
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Answer:
Your friend, Caitlyn, does not think it is important to review her monthly credit card statement. Instead, she just sets up an automatic minimum payment on the 18th of each month. Convince Caitlyn that this is a bad idea.
Caitlyn is working on her own reasoning which is not economical enough, when you make credit card statement review important. it would streamline spending as well as enables one to know where and what every penny is used for
Explanation:
Answer:
Cost of equity = 10.5%
Explanation:
<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)
This model can be used to work out the cost of equity as follows:
Ke= Rf + β (Rm-Rf)
Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?
Ke = 6% + 1.0× (10.5 -6)% = 10.5%
Ke = 10.5%
Cost of equity = 10.5%
