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Leviafan [203]
3 years ago
12

To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all tha

t apply.
A. What can go wrong?
B. What are the alternatives?
C. Is risk avoidable?
D.What is the likely return?
E. Is the risk worth the return?
Business
2 answers:
AleksAgata [21]3 years ago
5 0
The practical questions that a buyer should ask are: -What can go wrong? And -Is the risk worth the return? These questions are very deep that can help the buyer in his or her decisions in purchasing a product. These are critical questions that must be answered by the seller because these questions will test if the product is worth to pay. <span>
</span>
vaieri [72.5K]3 years ago
4 0
I believe the answer is: 

- What can go wrong?
This question is asked to find out the potential risk that may occur after purchasing the product.

- What is the likely return?
This question is asked to find out potential benefit from consuming the product

-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk

</span>
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Answer:

Instructions are below.

Explanation:

Giving the following information:

The selling prices are $1,310 per desk unit and $560 per chair. The variable costs are $810 per desk unit and $310 per chair. Fixed costs are $180,000.

The company sells 3 deks per 2 chairs.

Sales proportion:

Desks= 3/5= 0.6

Chairs= 2/5= 0.4

1) Selling price per composite unit= sales proportion*selling price

Selling price per composite unit= 0.6*1,310 + 0.4*560

Selling price per composite unit=  $1,010

2) Variable cost per composite unit= sales proportion*unitary variable cost

Variable cost per composite unit= 0.6*810 + 0.4*310

Variable cost per composite unit= 610

3) Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 180,000/ (1,010 - 610)

Break-even point (units)= 450 units

4) Number of units for each product:

Desks= 0.6*450= 270

Chairs= 0.4*450= 180

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3 years ago
A tenant's landlord plans to sell the building in which the tenant lives to the state so that a freeway can be built. the tenant
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Answer:

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It doesn't include anything related to previous earnings and performarce. Like net income, net loss, increase in equity, increase in assets or any other variance about the company's composition of his capital and income.

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The process by which power is distributed and decisions are made is known as:
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3 years ago
Westmoreland Corporation prepared its statement of cash flows for the year. The following information is taken from that stateme
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Answer:

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Explanation:

To arrive at the cash at the beginning of the year, we can draft the following extract of the statement of cash flows:

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Net cash provided by operating activities           $16,300 ---(a)

Net cash provided by investing activities                5,100 ---(b)

Net cash flow used in financing activities             (11,500) ---(c)

Net increase in cash (a+b+c)                                 $9,900

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Net increase in cash ($9,900) + X = $13,600

Cash balance, beginning of the year (X) = $13,600 - $9,900 = $3,700.

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