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3 years ago

What is the prime reason that Jenny's discretionary income is more volatile than her salary?

Business

1 answer:

sweet [91]3 years ago

7 0

Answer:

c. Her mortgage payments and necessities are fixed

Explanation:

Discretionary income is the remaining income after being paid out for all fixed expenses (i.e. Discretionary income = Salary - Mortgage - Income tax etc). The primary reason for variability in it is due to the mortgage payment and fixed expenses from the basic salary received.

So, option c is correct while other options are incorrect as tax does not affect as well as cost of living

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Cost-volume-profit [CVP] analysis is a widely-used, basic business model. Discuss the underlying assumptions made in the applica

faltersainse [42]

Answer:

Cost-volume-profit [CVP] Analysis

The cost-volume-profit analysis model assumes that the total fixed cost, the variable cost per unit, and the selling price per unit remain constant within the relevant range.

It is very difficult for a company to remain in the relevant range, where the assumptions will be obtained. Market forces, including the dynamics of competition change the underlying assumptions. For example, a company may become more efficient in its operations, thereby reducing its variable cost per unit. The total fixed cost may also change when the company increases its activity levels.

However, these limitations do not make the model less useful. It can be relied on to make short-run profit and pricing decisions.

Explanation:

The management of a business finds the CVP model useful in making important management decisions, especially decisions that relate to budgeting of production and sales, cost control, and profit planning. Management uses the CVP model to determine the break-even point in both units and sales dollars. Overall, management relies on the model to select its competitive products.

7 0

3 years ago

In the five forces model, the __________ that companies compete against one another for customers, the _________ the level of pr

slava [35]

In the five forces model, the more that companies compete against one another for customers, the lower the level of profits is likely to be for that industry.

3 0

4 years ago

Flannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed co

mojhsa [17]

Answer: The break even point in dollars is $2,000,000.

We calculate the break even point (BEP) in dollars as follows:

$\mathbf{BEP = \frac{Fixed Costs}{Contribution Margin Ratio}}$

We calculate Contribution Margin ratio as :

$\mathbf{Contribution Margin Ratio = \frac{Sales - Variable Costs}{Sales}}$

$\mathbf{Contribution Margin Ratio = \frac{450 - 270}{450}} = 0.4$

Substituting the Contribution Margin Ratio in the break even point formula we get,

$\mathbf{BEP = \frac{800000}{0.4}}$

BEP = $2,000,000

7 0

4 years ago

Damaris is a member of AASA. What did she most likely learn from a meeting she recently went to? A professional accountant would

Andrew [12]

Answer:

There is a conference for school principals coming to town

Explanation:

Remember, the full meaning of the acronym AASA is the American Association of School Administrators.

Hence, we could more likely conclude that from all the listed options, she most likely learned from such a meeting that there is a conference for school principals coming to town because members of this organization consist mainly of leaders of educational facilities such as principals.

4 0

4 years ago

Read 2 more answers

When a home builder decides to computerize all of its production schedule, it directly answer the what how or who question

pashok25 [27]

Answer:

The answer is How.

Explanation:

When a home builder decides to computerize all of its production schedule , it directly answers the HOW question.

Hope this helps!! ;)

4 0

3 years ago