Answer:
The increase in pre-tax income 20,000
Explanation:
The fixed cost of production would remain the same whether or not the special order is taken, hence, irrelevant for the decision at hand.
The sale price for the special order=10
the variable cost per unit=6
contribution margin per unit from special order=10-6=4
The increase in pre-tax income=total contribution margin from special order
The increase in pre-tax income=5000*4
The increase in pre-tax income=20,000
Hence, accepting the order is worthwhile.
Answer: Memorandum Of Understanding (MOU)
Explanation: A memorandum of understanding may be explained as a binding document between two or more parties usually employed to showcase an agreement in action, decision or intent of the parties involved. The memorandum of Understanding may be adopted to serve as a commitment to partner between two or more parties where the parties prefer to adopt a gentle or leave out legal procedure in their agreement deal.
In the scenario above, Bob will have to create a Memorandum of Understanding which will be signed by Bob's company and the third party to signify a convergence of will between them.
Answer:
The correct option here is B) the probability of loans not getting repaid in some countries because of political upheaval.
Explanation:
The risk premium is a return on investment that one expects it will yield, this is the return which is in excess of risk free rate of return.
In the risk premium for interest rate it includes both country risk and future exchange rate changes. Where country risk refers to a situation where there is a good chance that loans in some countries won't be repaid due to the political upheaval.
Answer:
a. demand assurances of performance from Massive.
Explanation:
When Silas Paving Co finds out about the sale of Massive Earthmovers assets to Phoenix Equipment corp, it should find out from Massive if there is still assurance of performance on their contract. If assurance is given by Massive that the contract still holds then Silas Paving Co does not need to worry.
If however there is no assurance from Massive then Silas will be able to take action against Massive for breach of contract.
