Answer:
The answer is E. compensates investors for expected price increases.
Explanation:
Inflation premium arise from that, investors holding nominal assets
are exposed to unanticipated changes in inflation.
Answer:
D. Contribution margin would be equal to total fixed costs
Explanation:
As we know that
break even point is the point at which the firm is earning no profit or no loss suffered
In equation, it is
Total cost = Total revenues
In addition,
The contribution margin = Sales - variable expenses
Therefore
The contribution margin = Fixed cost = break even point
If we subtract the contribution margin from the fixed cost the amount should be zero which implies the break even point
Answer:
Total overhead for O6 697,933
Explanation:
First, we solve for the activity rates:
![\left[\begin{array}{ccccc}$Activity&$Driver&$cost pool&$Total base&$Rate\\Processing&MHS&51000&16240&3.14\\Supervising&batches&31600&1230&25.69\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%24Activity%26%24Driver%26%24cost%20pool%26%24Total%20base%26%24Rate%5C%5CProcessing%26MHS%2651000%2616240%263.14%5C%5CSupervising%26batches%2631600%261230%2625.69%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Then, we apply this rate to the Product O6 base cost driver values
![\left[\begin{array}{ccccc}Activity&base&Allocate O6\\Processing&15600&48984\\Supervising&810&20,809\\Total&&69,7933\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7DActivity%26base%26Allocate%20O6%5C%5CProcessing%2615600%2648984%5C%5CSupervising%26810%2620%2C809%5C%5CTotal%26%2669%2C7933%5C%5C%5Cend%7Barray%7D%5Cright%5D)
