Answer with Explanation:
<u>Risk which can’t be mitigated</u>: The risks that the share price would fall due to sudden political environment instability or events that effects the economy will definitely affect the business operations as well. Thus are the risks that can not be mitigated at all. Another example would be Corona virus implications on the operation of the company which is again a risk that can't be mitigated.
<u>Risks, that aren’t worth the effort to reduce the exposure any further: </u>
The part of the sentence talks about the risk exposure which says that if the company doesn't resides in an area which is not prone to seismic activity and the chances of earthquake in a country is below 0.000001% which is almost negligible but still it is worthless to purchase the earthquake insurance. As this risk is almost negligible hence it is not worth the effort to reduce the exposure any further.
<u>Risks that wouldn't be addressed in short term due to other priorities: </u>
The risks that will not occur in the next 12 month, can be addressed after 6 months and thus allowing the company to prioritize the risks that must be resolved first. This means that if their is a risk that one of our several products that would be launched after 12 months from now will not be winning customer market can be addressed after 6 months because it is dependent on our future action. If we don't launch our product, our product is not rejected by the customer. Hence situations like this allows us to prioritize our risks.
Answer:
Yes $30 agsinst $19.50
The variable cost for the first 50 untis is $17.50
Yes $30 against $27.25
average variable cost for the first 100 units $26.25
Marginal cost for the first 50 units: 17.50 which is lower than marginal revenue
from 51 units and subsequent untis: 35 which is higher than marginal revenue
It will produce 50 units achieving $525 of profit
Explanation:
$100 fixed cost /50 units + 17.50 = 19.50 average cost
selling price: $30
100 fixed cost + 17.50 x 50 + 35 x 50 = 2725
total cost 2,725 / 100 units = 27.25 unit average cost
selling price $30
($17.50 x 50 + $35 x 50)/100 = 26.25
After the 50untis our profit will decrease as the marginal revenue is lower than marginal cost thus, we stuop production at the 50 units:
50 x 30 - 100 fixed cost - 17.50 x 50 variable cost = 525 profit
b
Explanation:
From the lessee's perspective, in the earlier years of a lease, the use of the:
capital method will cause debt to increase, compared to the operating method.Therefore option b is correct. As in early years of lease operating method is far more beneficial then the capital method.
Answer:
Pay as you earn, P.A.Y.E
Explanation:
The best method to be adopted here is pay as you earn, P. A. Y. E.
Pay -as-you -earn is a type of payment, whereby the worker is being paid as per the amount, hour, day, week or month he used to work.
Most times, it is always based on daily basis.
In this aspect, Michonne and Negan should agree on P. A. Y. E method of payment. Because, it is the only method that will satisfy both parties.
Answer:
a. $1,700 U
b. $3,260 F
Explanation:
a. Fixed over head budget variance = Actual fixed overhead - Budgeted fixed overhead
Actual fixed overhead = $35,700
Budgeted fixed overhead = $34,000
Fixed overhead budget variance = $35,700 - $34,000
= $1,700 U
b. Fixed overhead volume variance = Budgeted fixed overhead - Standard fixed overhead
Standard fixed overhead application rate = $2 per machine hr × 1hr
= $2
Budgeted fixed overhead = $34,000
Standard fixed overhead = Standard hours for actual output × Budgeted rate
= (18,630 units × 1hr) × $2
= $37,260
Fixed overhead volume variance
= $34,000 - $37,260
= 3,260 F
