The firm that would suffer the greatest decline in profits if sales volume declines by 15% is Mason Company.
The cost of a company is made up of fixed cost and variable cost. Fixed cost is the cost that does not vary with output of the company. It remains fixed no matter the level of output. An example of fixed cost is rent. Variable cost is the cost that varies with output. If output increases, variable cost increases and if output falls, output decreases.
If sales volume decreases, the output of Mason Company would decline more compared with the output of Kelley company because it has a higher fixed cost. So, we when sales reduces, its cost would would not reduce as many as the cost of Kelley company.
To learn more, please check: brainly.com/question/13059508
Answer:
- <em><u>The CPI for the current year is 104.49 </u></em>
<em><u /></em>
Explanation:
A) Expenditure breakdown of the base year:
You must check that they add 100%
- Food and beverages: 17.8%
- Other goods, and services: 5.8%
Total: 17.8 + 42.8 + 6.3 + 17.2 + 5.7 + 4.4 + 5.8 = 100
Thus, the CPI of the base year is 100.
<u>B. Expenditure breakdown of the current year.</u>
Calculate the changes by adding the percent of increase to each item tha has changed.
1. <u>The prices of food and beverages have increased by 10 percent</u>:
2.<u> The price of housing has increased by 5 percent</u>:
3. <u>The price of medical care has increased by 10 percent</u>:
The other prices are unchanged.
Then, the new breakdown is:
- Food and beverages: 19.58%
- Other goods, and services: 5.8%
Of course the new total is not 100%.
- 19.58 + 44.94 + 6.3 + 17.2 + 6.27 + 4.4 + 5.8 = 104.49
That means that the price of the total basket of products has increased from 100 to 104.49.
Thus, <u>the CPI of the current year is 104.49 ← answer</u>
Answer:
<u>will</u>, <u>would like </u>
Explanation:
Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.
The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.
Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.
When coupon rate of payment is higher than YTM, such bonds are priced at a premium.
Answer:
Forecasted sales
Explanation:
In the production process amount of inventory purchased for producing goods must be carefully calculated.
This avoids waste incurred from buying excess of materials needed for operation. Also when there is shortage of materials time and resources are wasted getting more materials.
So when calculating material requirements for finished products it is important that we consider sales forecasts.
Materials purchased based on this will just adequately meet the demand for product.
This reduce cost of storage of excess materials.