Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
Answer: 1250
Explanation:
Let's go in stages,
Gizmos are sold for $80 and have a variable cost of $36. Subtracting that would give us $44. This is the Contribution margin of Gizmos.
Gadgets are sold for $50 and have a variable cost of $22. Subtracting that would give us $28. This is the Contribution margin of Gadgets.
The text says that 3/4 of goods sold are Gizmos with the rest being gadgets.
Let's account for that using their contribution margins.
This means that Gizmos contribute 3/4 from their CM which we'll calculate as,
= 3/4 * 44
= 33
Gadgets would be
= 1/4 * 28
= 7
The Weighted Average contribution margin for both goods in their selling proportion is therefore,
= 33 + 7
= $40
If they make $40 as the weighted average CM then to find the amount of units needed to break even with a fixed cost of $50,000 can be calculated by dividing the fixed costs by the Weighted Average CM which would be,
= 50,000/40
= 1250
They would need to sell 1250 total units in order to break even with a product mix of 3/4 Gizmos and 1/4 Gadgets.
Please do react or comment if you need any clarification. Thank you.
Answer:D Expansion
Explanation:
Economics Definition of Expansion is: It is a period of economic growth as measured by a rise in real GDP.
The criteria would a private, nonprofit university follow in determining whether to recognize donated services revenue both a and b.
What is revenue?
Revenue is the cash that a firm generates via its operations. Depending on the accounting technique used, there are several ways to compute revenue. Sales made on credit will be included as revenue for products or services provided to the client under accrual accounting. Revenue may be recognized in accordance with certain standards even though payment has not yet been made.
The cash flow statement must be examined in order to determine how well a business collects debts. Contrarily, cash accounting only counts sales as income when money has been exchanged. A "receipt" is a payment made to a business; receipts can exist without income.
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Answer:
By establishing cross-functional teams.
Explanation:
The Sunset foods company adopts a highly centralized functional structure, which is defined by decision-making as a strict function of the company's top management. In this structure, there is greater hierarchy and control, which makes it difficult for employees to collaborate on important company decisions and consequently contributes to a more rigid and not so innovative work environment.
Therefore, as the company's intention is to improve its ability to collaborate without sacrificing the benefits of its current centralized structure, the most appropriate strategy would be to establish multifunctional teams.
These teams are composed of people from different departments, which could better contribute to the transfer of ideas and information from one department to the other, while there is still managerial control over the teams.