Answer:
(C) The security has a maturity that takes place within the next year.
Explanation:
A liquid investment is an investment that can be easily and swiftly converted into cash. Cash is the most liquid asset, but it also yields virtually no returns. Generally, the more liquid an investment, the lower returns it tends to yield.
In this particular case, the investor is worried about the liquidity of the investment, so the RR must look for securities that mature in a short period of time. Only option C makes any reference to maturity time, and since these municipal bonds mature within the next year, they are short term investments.
Answer:
The answer is c. lower than the rate for all new businesses.
Explanation:
When you start a franchise it's business risk is much lower than a new business. The parent organization supports you both financial and in terms of training and development and you have the access to and already well established brand and a market segment as well. Which makes it easier and safer.
Answer:
75 bouquets
Decrease 50
Explanation:
Supply is the amount of goods and services supplied at different prices.
According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
B. According to the table provided, when price was $30, 75 bouquets were ordered but when price was $20, 25 bouquets were ordered.
the supply would decrease by 75 - 25 = 50
Answer:
1.
Break even in units = 12100 units
Break even in dollar sales = $484000
2.
Total contribution margin at break even point is $145200.
Explanation:
1.
Break even point is a point, calculated in either units or in dollar value, which provides a point where there is no profit or no loss and the total sales revenue is equal to the total cost.
Break even in units and in dollars can be calculated as follows,
- Break even in units = Fixed costs / Contribution margin per unit
- Break even in dollars = Fixed costs / Contribution margin ratio
- Where contribution margin = Selling price per unit - variable cost per unit
- Contribution margin ratio = Contribution margin per unit / selling price per unit
Break even in units = 145200 / 12 = 12100 units per month
Break even in dollars = 145200 / (12/40) = $484000
2.
Total contribution margin at break even point is $145200 because total contribution margin is the difference between the total sales revenue and total variable cost and at the break even point, the total contribution margin is enough to cover total fixed cost. So, it is equal to the total fixed cost.
