Answer: 6.91%
Explanation:
Expected return = Sum of (Probability of state of economy * Return given state of economy)
= (56% * 8%) + (12% * 25%) + (19% * -3%)
= 4.48% + 3% - 0.57%
= 6.91%
Answer:
Economies of Scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.
Explanation:
Answer:
C.
Explanation:
The purpose for communication is whatever the reason you would want to communicate in the first place.
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Answer & Explanation:
<u>a.- Revenues: </u>Increase for 3.2 millions
It will be recognize for the entire order, as it was deliveried entirely within the accounting period.
<u>b.- Earnings: </u> Increase for 1.5 millions
The earnings for the business will be the net between the revenues and expenses.
3.2 revenues - 1.7 expenses = 1.5 earnings
<u>c.- Receivables: </u> Increase for 1.8 millions
It will increase for the unpaid portion ofthe order.
<u>d.- Inventory</u> Decrease for 1.7 millions
It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.
<u>e.- Cash:</u> Increase for 1.4 millions
It will increase for the amount received from the customer. As it was no payment from the business in the transaction.
Answer: Option A
Explanation: In simple words, it refers to the pricing strategy in which the firm initially charge a lower price of product to attract the customers and make a strong position in the market.
Hence it is effective only on those markets where the customer gives value to price more than the quality and assurance he is getting from the existing product.
Thus, from the above we can conclude that the correct option is A.