Answer:
1a.
Magic Realm, Inc.,
Contribution format income statement
Per Unit Amount
Sales 62 2,207,200
Variable expenses 42 (1,495,200)
Contribution margin 20 712,000
Fixed expenses (623,000)
Net operating profit 89,000
1b.
Degree of operating leverage: 4
2. The expected percentage increase in net operating income for next year: 184%
Explanation:
1a. Please refer to the answer part
1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.
2.
Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%
Answer:
c. The maturity risk premium is assumed to be zero.
Explanation:
In the case when the term structure of the rate of interest would be measured via the pure expectations theory so here the maturity risk premium would be zero as under this theory it is assumed that the risk premium i.e. of the long term would be equivalent to the zero
Therefore the option c is correct
And, the rest of the options seems wrong
Under the law, 14 years old cannot legally use a PWC legally, unless accompanied by an 18 yr old who has been accepted to use a vessel. The person should also bear the requirements such as the age and approved certification that would prove that he or she is allowed by the government.
<span>The sample is the 1,000 men tested in two groups. The population would be the broad class of balding men. All 1,000 men are considered a part of the sample regardless of which group they were in because each of the 1,000 men is representing an equal portion of the population.</span>
