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3 years ago

Assuming all else is constant, which of the following statements is correct?

Business

1 answer:

iogann1982 [59]3 years ago

3 0

Answer:

E. For a bond of any maturity, a 1.0% point increase in the market interest rate (rd) causes a larger dollar capital loss than the capital gain stemming from a 1.0% point decrease in the interest rate.

Explanation:

Considering or using a graphical representation of the relationship between a typical bond’s price and a given current interest rate.

The graph will depict curve that is cupped, demonstrating that at any interest rate, the reduction in price from an increase in rates is not up to the increase in price from a comparable interest rate reduction.

Hence the right answer is Option E.

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BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. If BrewCo is able to reduce its

PolarNik [594]

Answer:

C. increase by about 6 percent.

Explanation:

Since,

$\text{Contribution margin ratio}=\frac{\text{Sales-Variable expenses}}{\text{Sales}}$

Sales = $ 120,

Original expenses = $ 65

Thus, contribution margin ratio = $\frac{120-65}{120}=\frac{55}{120}=0.4583\approx 0.46$

New expenses = $ 58,

Thus, contribution margin ratio = $\frac{120-58}{120} = \frac{62}{120}=0.5166\approx 0.52$

∵ 52 - 46 = 6,

Hence, the CMR is increased by 6%.

OPTION C is correct.

5 0

3 years ago

Gato Inc. had the following inventory situations to consider at January 31, its year-end. (a1) Identify which of the following i

Norma-Jean [14]

Answer:

A) Should not be included in inventory but included in Steele Corp's inventory

B) Should be included in inventory

C) Should be included in inventory

D) Should not be included in inventory because once they are shipped, they become the buyers property.

E) Should not be included in inventory but suppliers inventory.

F) Should be included in inventory

G) Should not be included in inventory. Should be included in Office Supplies inventory rather than Merchandise Inventory

Explanation:

A) Should not be included in inventory but included in Steele Corp's inventory

B) Should be included in inventory

C) Should be included in inventory

D) Should not be included in inventory because once they are shipped, they become the buyers property.

E) Should not be included in inventory but suppliers inventory.

F) Should be included in inventory

G) Should not be included in inventory. Should be included in Office Supplies inventory rather than Merchandise Inventory

4 0

3 years ago

5. A nation's frictional unemployment rate is 1%. Its cyclical rate of unemployment is 9.7%, and its structural

umka2103 [35]

Answer:

14.7%

Explanation:

Frictional unemployment occurs when a person willingly quits his/her job in order to seek a better job.

Structural unemployment occurs when a person's skills do not fit the skills required by the firms that are hiring.

Cyclical unemployment results from a decrease in economic activity.

7 0

3 years ago

Maggie purchased a life insurance policy. She was concerned that if she became disabled, she would no longer be able to pay the

ehidna [41]

Answer:

The correct answer is letter "B": rider.

Explanation:

While talking about insurance, riders are provisions added to the regular coverage for life, home, or auto policies. The insured can request adding the rider under a determined fee which is usually low because there is little underwriting involved. Riders are customizable amendments that fulfill very specific needs of the policyholders.

<em>In Maggie's case, a rider was added to protect her in the case she becomes disabled because she is concerned that event can happen.</em>

3 0

3 years ago

A business-level strategy addresses: Group of answer choices how a business should define its mission and vision. how an organiz

Pavel [41]

Product organisation is the grouping of sales and production efforts of a business as per the line of products and services of the business. This kind of organisation is chosen by businesses when they have some different product lines and they require special expertise for marketing and distributing them.

8 0

3 years ago