Answer:
Higher the risk, higher the expected returns on an investment.
Explanation:
Generally speaking when investments are made the higher the risk, the higher the returns, and also the lower the risk the lower the returns.
For example shares are a low risk investment and they have low returns mostly in cents to the dollar.
However an investment like trading speculatively in the forex market has high returns where you can double or triple investment. Investors are also likely to lose all invested capital.
<span>Value pricing is the practice of simultaneously increasing product and service benefits while maintaining or decreasing price. The value-based pricing strategy wants to optimize value and price and have set prices. The perceived value to the customer is the most important gain from a value-based pricing strategy. </span>
That statement is false.
Variable cost is the type of cost that incurred everytime a product is being produced. In flexible budget, the total budget will be adjusted to the amount of changes in volume or activity, which make the variable cost pretty much the same even though the activity is declined
Answer:
6780$
Explanation:
We first find 11% of 2000 by the following equation
2000 x .11
From this we get the annual interest 226$
226$ x 30 = $6780
To solve for units sold at an income of $200,000:
First, I would subtract the variable cost of $8 from the unit sales price of $18 dollars which gives you $10.
Unit profit = $10
Fixed costs = $200,000
How many units need to be sold to earn an income of $200,000?
40,000 units x $10 = $400,000 - $200,000 = $200,000
40,000 units need to be sold to earn an income of $200,000.