Mijo made $2,200 profit. The initial investment had nothing to do with him therefore it is not considered his loss because the initial investment did not belong to him. Once he inherited the stock at $12,000 his personal profit/loss began to occur. Also the character of the profit would be not a fixed remuneration becauae of the flux of the markets, fees, etc.
Answer:
The correct words for the blank spaces are: risk avoidance; risk acceptance.
Explanation:
Risk avoidance refers to not taking any action related to risk. This is the most radical way of avoiding risks and implies missing all chances of obtaining benefits from investing. Risk acceptance requires the analysis of the losses and gains an investment carries. When the potential losses are smaller than the benefits of assuming the investment, it would be rational to go ahead and take the risk. The opposite happens if the potential losses are greater than the potential benefits.
Answer:
activitity rate:
sprocked unit cost: $ 38.95
hub units cost: $ 93.00
Explanation:
We divide teh cost pool over the total of the cost driver.
This give us the activitty rate.
Then we multiply each rate by the use of each product:
And divide by the total units to get the unti manufacturing overhead
Finally we add the cost component:
Sprocked:
materials $ 18 + $ 15 x 0.40 units + $ 14.95 = 38.95
Hubs
materials $ 32 + $ 15 x 0.80 units + $ 49 = 93