Answer:
Explanation:
1a
Break-even point in dollar sales 406957 =(109200+78000)/46%
1b
Break even point
Chicago office 72429 =50700/70%
Minneapolis office 146250 =58500/40%
1c
Greater than
2
Increase in sales 48750
X CM ratio 40%
Net operating income increase 19500
3
Total company Chicago Minneapolis
Amount % Amount % Amount %
Sales 520000 100.0% 130000 100.0% 390000 100.0%
Variable expenses 273000 52.5% 39000 30.0% 234000 60.0%
Contribution margin 247000 47.5% 91000 70.0% 156000 40.0%
Traceable fixed expenses 109200 21.0% 50700 39.0% 58500 15.0%
Office segment margin 137800 26.5% 40300 31.0% 97500 25.0%
Common fixed expenses not traceable 78000 15.0%
Net operating income 59800
Answer:
d. compound interest
Explanation:
Compound interest basically means that previously earned interests will earn interests on their own. For example, you invest $100 and receive a 5% yield. At the end of year 1 you will have $105. At the end of year 2 you will have $105 x 1.05 = $110.25. The $5 in interests previously earned during year 1 will earn $0.25 interest during year 2.
Answer:
Insider Trading
Explanation:
Based on the information provided in regards to the situation at hand, it can be said that Charles is engaged in Insider Trading. Insider Trading is when an individual purchases stocks in order to make a profit using information that only a handful of people know about, gathered from private knowledge within a company. Which is exactly what Charles is doing.
Answer:
The correct answer is letter "D": Opportunity cost.
Explanation:
Opportunity cost is described as the return of the choice selected over the potential return that could have been obtained from the choice left behind. It represents the return of the option chosen compared to the choice forgone. Opportunity costs is also defined as the return of the best next available option.
