Answer:
Compensate for the risk
Explanation:
In the context of the scenario given , risk is defined as a form of exposure to a potential dangerous situation.
It is necessary for any person organization facing a risky situation to look for ways of minimizing or avoiding the risk in order to reduce related losses. Risks can be avoided through transfer , rejection , delayed action and compensating the risk,
The method of risk aversion described in the scenario is to compensate the risk.
Compensating the risk is a risk control method of using an alternative means to achieve a particular purpose in order to avoid the related risks to using the initial method.
Earned a degree from a four-year college at least. I HOPE IT HELPS :)
Answer:
False
Explanation:
The weighted average contribution margin is calculated by multiplying individual contribution margin with respective size pizzas (i.e number of units sold) then total contribution margin (i.e of both medium and large size) is divided upon total number of units sold, see as follows:
According to Buttercrust Pizza company's sales data medium pizzas sold are twice the number of large pizzas. Now here we have to take an assumption since we aren't given actual sales units. Keeping in mind the sales data we can assume that 100 units of medium pizzas and 50 units of large pizzas are sold during the period.
Contribution margin of medium pizza: (CM× units of medium size pizzas)
Contribution margin of large pizza: (CM× units of large size pizzas)
Contribution margin of medium pizza: $10× 100 = $1000
Contribution margin of large pizza: $22× 50 = $1100
Total contribution (of both pizza sizes) = $2100
Total sales units (of both pizza sizes) = 150
The weighted average contribution margin is calculated as follows:
WACM= $2100÷ 150
WACM= $14
(Disclaimer: the solution of this question has been concluded using self-induced assumptions.)
Answer:
Explanation:
Pizza quantity Change = 60-50 = 10
Income change = $12000 - $10000 = $2000
Mid point of Quantity of Pizza = (50+60)/2 = 55
Mid point of income = ($12000 + $10000)/2 = $11000
Income elasticity = 10*11,000/2000*55 = 110,000/110,000=1
Pizza is a unit elastic normal good, because percentage change in income = % change in pizza quantity
