It seems that you have missed the necessary options for us to answer this question, so I had to look for it. Anyway, here is the answer. Unlike the marketing research problem, the management decision problem <span>focuses on problems that are much broader in scope. Hope this answers your question.</span>
Answer:
Explanation:
The two attached pictures shows the explanation for this problem. I hope it help you. Thank you
Answer:
A. its operating income for the period will be higher than under absorption costing
Explanation:
As we know that
Under absorption costing, the fixed cost is divided on the number of units produced
And under the variable costing, the fixed cost is considered as a cost selling of goods so the absorption costing method will be lower than the value of finished goods.
As per the question, the started finished goods will help and sell the whole production and starting balance that means under absorption costing of goods which is to be sold is much than variable costing.
Present value of obligation is: 10,300(Cumulative PVF at 8% for two years)=10,300*1.783=$18,367.63
Duration of obligation is 1.4808 years.
The duration of a zero-coupon bond is 1.4808 years would immunize the obligation. $18,367.63(1.08)1.4808=$20,584.82.
If interest obligation increases to 9%, the value of the bond would be $18,118.65 and it changed by $0.19, the same is for if it falls to seven percent.
Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)
- Cutiepatutie ☺❀❤
