Answer:
Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.
Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:
Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1
If the contribution per unit has been decreased the breakeven will rise.
Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.
Option 3 is 100% right because equation 1 is
Breakeven Point=Fixed Cost/ Contribution per unit
Which says
If the contribution per unit has been decreased the breakeven will rise.
Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases
which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.
Answer: Pay fixed rate while receiving floating rate.
Explanation:
According to the given question, If the second national bank contain more rate of liabilities as compared to the rate of asset in any organization then it basically reducing the risk of the interest rate by using the technique swapping with paying some fixed amount of rate at the time of receiving the floating rate.
The process of fixed to floating swap is one of the contractual process between any two types of companies or members so that they can swap their cash flow system.
Therefore, The given answer is correct.
Answer: c. contingency
Explanation:
Contingency management techniques aim to identify the risk that a company is facing by going into a particular situation and then coming up with ways to counter these risks. It is therefore a management technique that tries to adapt to the specific situation of the company.
Olivia in matching an appropriate technique to the company situation is therefore adhering to this management technique.
Answer: 245
Explanation:
From the question, Audreys free-throw percentage this season is 0.875 and if she makes only 13 of her next 20 free throws, the percentage will drop to 0.860. To calculate the number of free throws Audrey has made this season goes thus:
Audrey's current rate = 0.875
Let us say y out of z should be 0.875
y/z = 0.875 ........ equation i
Therefore,
y+13/z+20 = 0.860 ........ equation ii
Recall that y/z = 0.875
y = 0.875z
Put the value of y into equation ii
y+13/z+20 = 0.860
0.875z + 13/z + 20 = 0.860
Cross multiply
0.875z + 13 = 0.860(z + 20)
0.875z + 13 = 0.860z + 17.2
Collect like terms
0.875z - 0.860z = 17.2 - 13
0.015z = 4.2
z = 4.2/0.015
z = 280
Since y =0.875z
y = 0.875 × 280
y= 245
Therefore, the number of throws Audrey made this season is 245
Answer:
A price ceiling is a bar on the legal maximum price a commodity can be sold for while a price floor is the least legal price a commodity can go for.
The price ceiling is always greater than the price floor in this case it is not so, hence the price floor is not binding to the price ceiling.
the statements below is analyzed under price ceiling and price floor according to whether it is binding or nonbinding.
Explanation:
1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.
Statement one is neither a price ceiling nor a price floor and it is nonbinding
2. The government has instituted a legal minimum price of $1.80 each for donuts.
Statement two is a price floor and it is binding.
3. The government prohibits donut shops from selling donuts for more than $1.10 each.
Statement three is a price ceiling and it is binding.
