Answer:
Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%
Explanation:
Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.
Item Prob Earn
Booming 20% -6%
Normal 55% 7%
Recession 25% 13%
Ok, now let´s calculate the expected rate of return.
So the expected rate of return of the stock is 5.90%
Best of luck.
Answer:
Volume variance $1,320 Favorable
Explanation:
The fixed overhead volume variance is the difference between the actual and budgeted production unit multiplied by the standard fixed production overhead cost per unit.
Standard fixed overhead cost per unit = $11×6 = 116
Units
Budgeted units 375
Actual units <u>395</u>
Volume variance 20
Standard fixed overhead cost <u>× $66
</u>
Volume variance <u> $1,320 Favorable</u>
Answer:
the statement of comprehensive income
Explanation:
The statement of comprehensive income refers to a summary in which the net assets are to be recognized for a particular period of time. It shows the adjustments made to the equity that would be highlighted also. Plus the net income could be determined by preparing an income statement
Therefore in the given case, the changes that are made in the stockholder equity would be come under the comprehensive income statement and the same is to be considered