Answer:
The business manager should assume that the building expense is fixed.
Explanation:
Fixed costs are not correlated with the revenue levels. Within the relevant range, fixed costs remain constant. They do not vary with the activity levels as variable costs do. For example, a manufacturer must pay for rent, repairs and maintenance, and utility bills irrespective of the revenue levels at which it is operating. This is why the business manager always discovers that the building expense each month does not correlate with the revenue levels, unlike the product's variable costs.
To calculate for the approximate market potential, we
simply have to take the ratio of the current market demand over the market
development index in fraction. That is:
market potential = 320 million / 0.55
<span>market potential = 582 million</span>
Answer:
Policy loans are permitted on an interest-free basis.
Explanation:
The universal life insurance policy refers to a policy in which there is a component of an investment saving also it involves less premium that the person has to pay a low premium amount for continuing the policy. It could benefit the beneficiary after the death of the insured person
So according to the given situation ,for option B there is no flexibility available as no policy loans could be permitted without an interest
Answer:
$281,612
Explanation:
Plane Operating Cost = Fixed cost + (Variable cost per unit1 × q1) + (Variable cost per unit 2 × q2)
Plane Operating Cost = $40,190 + ($2709*88) + ($10 * 303)
Plane Operating Cost = $40,190 + $238,392 + $3,030
Plane Operating Cost = $281,612
So, the plane operating costs in the planning budget for August would be $281,612
