What are the functions of business.

The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable se

postnew [5]

Answer: True

Explanation:

Variable selling and administrative expenses increase with the number of sales so in order to get them, one needs to multiply the number of sales by the variable and administrative expenses.

This also goes for the budgeted variable selling expenses. To find out these costs, multiply the expected variable and admin expenses by the budgeted number of sales. The amount you get will show the amount of variable expenses to budget based on the sales you budgeted.

3 0

3 years ago

In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and othe

Murrr4er [49]

Answer: 6.29%

Explanation:

Required return = Risk free rate + beta ( expected return - risk free rate)

Beta.

$= Correlation * \frac{Volatility of venture}{Volatility of fund} \\\\= 0.16 * \frac{0.8117}{0.2636} \\\\= 0.493$

Required return = 3.63% + 0.493(9.03% - 3.63%)

= 6.29%

7 0

3 years ago

Which of the following is an example of an activity undertaken by an entrepreneur? A. being promoted to the position of Chief o

luda_lava [24]

Answer:

C) starting a snow cone business

Explanation:

An entrepreneur is someone who decides to start his own business, usually a small business. Only option C refers to starting a new business.

Option A and B refer to positions where you are employed by the government (being a government employee is the opposite of being an entrepreneur).

Option D refers to painting your kitchen not opening a new business.

5 0

3 years ago

Product V72 sells for $20 per unit as is, but if enhanced it can be sold for $25 per unit. The enhancement process will cost $52

Furkat [3]

Answer:

It will incur an Opportunity cost of $8,000.

Explanation:

It will incur the opportunity cost of $8000 because the additional unit produces by the company then the additional revenue that is generated will be equal to the amount (25 - 20) x 12,000 = 60,000. Since the additional cost, that incurs for the production of 12000 units is 52000. Therefore the profit earned is $8000.

So if the company does not produce it then it will lose the profit of $8000.

3 0

3 years ago

A fast-food restaurant has determined that the chance a customer will order a soft drink is 0.90. The proba- bility that a custo

azamat

Answer:

(a) The probability that the order will include a soft drink and no fries is 0.45.

(b) The probability that the order will include a hamburger and fries is 0.48.

Explanation:

Let the events be denoted as follows:

S = an order of soft drink

H = an order of hamburger

F = an order of french fries.

Given:

P (S) = 0.90

P (H) = 0.60

P (F) = 0.50

(a)

It is provided that the event of ordering a soft drink and fries are independent.

If events A and B are independent then the probability of event (A ∩ B) is:

$P(A\cap B)=P(A)\times P(B)$

Compute the probability that the order will include a soft drink and no fries as follows:

$P(S\cap \bar F)=P(S)\times P(\bar F)\\=P(S)\times[1-P(F)]\\=0.90\times (1-0.50)\\=0.45$

Thus, the probability that the order will include a soft drink and no fries is 0.45.

(b)

It is provided that the conditional probability that a customer will order fries given that he/she has already ordered a hamburger as, P (F|H) = 0.80.

The conditional probability of an event B given another event A has already occurred is:

$P(B|A)=\frac{P(A\cap B}{P(A)}$

Compute the probability that the order will include a hamburger and fries as follows:

$P(F|H)=\frac{P(H\cap F)}{P(H)}\\P(H\cap F)=P(F|H)\times P(H)\\=0.80\times 0.60\\=0.48$

Thus, the probability that the order will include a hamburger and fries is 0.48.

6 0

3 years ago