Answer:
The profit margin controllable by the Central Valley segment manager is: $ 95,000.
Explanation:
Only items directly controllable by the Manager should be included in the divisional financial performance measure.
<u>Central Valley Division</u>
Revenues $ 405,000
Less Variable Costs :
Variable operating expenses ($ 230,000)
Controllable Contribution $ 175,000
Less Controllable fixed expenses ($80,000)
Controllable Profit $ 95,000
Answer:
A recession
Explanation:
A recession is a period of slow or negative economic growth that lasts several months. In a recession, there is a general decline in productivity in the economy. In other words, the GDP growth rate drops too low or turns negatives.
Due to low productivity, unemployment rate rises as the industries and services sectors lay-off workers instead of creating job opportunities. There is reduced consumer confidence leading to low retail sales and a decline in prices.
Negative growth implies reduced levels of investment in the economy. Businesses experience low profits, and hence, stock prices fall. Economist considers recessions a part of a normal business cycle.
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Tax relief on business expenses.
Greater opportunity for tax planning.
Total control of your business and name.
One company for all your business interests.
Limited liability and protection of personal assets.
