Answer: Option (B) is correct
Explanation:
From the given case or scenario, we can state or conclude that the information intends to support a survival business objective. Survival is referred to or known as a short term objective or goal, especially for a small business that is just entering the market or starting out, or when an organization enters a market.
Answer:
Operating Income $75,000 $115,000
Explanation:
The computation of the operating income reflected is shown below:
Units 23,000 $31,000
Contribution Margin per Unit $5 $5
Contribution Margin (Units × Per Unit) $115,000 $155,000
Less : Fixed Cost -$40,000 -$40,000
Operating Income $75,000 $115,000
The contribution margin per unit is come from
= Selling price per unit - variable cost per unit
= $9 - $4
= $5
Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
Explanation:
Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.
For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .
The present value of both are:
= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²
= $1,486.43 = $8,264.46
<em>Notice the difference. The longer term investment was more exposed to interest rate effects. </em>
Answer: Option a
Explanation: Payback period in capital budgeting comes from a time needed to recover or exceed the break-even point of the funds spent on a project. Moreover, the payback period does not take into account the time value of money.
It is based on the number of years it would take for the funds spent to be recovered. Thus, payback period only evaluates a project on the basis of time period it takes to recover back the investment this results in ignorance of cash flows, which might be huge in amount, that results after the pay back period.
Frank is involved in planning if he researches the people that have wheat allergies and devises a way to cater to the people.
<h3>What is planning in business?</h3>
These are the strategies that are used in business where the manager would set objectives and goals for the company and then devise the ways that they would reach the goals they have set.
This is what Frank is doing here by setting up strategies to help cater for the individuals.
Read more on planning here:brainly.com/question/2486491
