Answer:
D) increase at a faster rate than the costs associated with those sales.
Explanation:
If the break even point was reached during the 20th day of the month, then any revenue generated during the remaining 10-11 days will increase net profits. The amount of net profit increase will be determined by the contribution margin of each service provided. The contribution margin = net sales - variable costs. Since the fixed costs have already been covered, the contribution margin will be equal to the net profit.
Answer:
Low betas.
Explanation:
Low beta stocks are considered to be less risky, and usually they also offer low returns. The risk of losing capital in this type of investment is very low. This type of investment is ideal for people that are risk adverse and prefer to maintain their capital even at low returns.
On the other hand the higher the beta the higher the risk, and it also comes with higher returns on investment.
Because the needs for household goods and food are always constant, the companies that supply them tend to have stock that are low beta.
Answer:
Explanation:
a.) Inventory turnover = Cost of goods sold / Inventory
Cost of goods sold= $25mill.
Inventory = $2mill.
Therefore, Inventory turnover= 25/2 = 50
b.) Weeks of supply held =( Inventory / Cost of goods sold) *52
**It's multiplied by 52 since there are 52 weeks in a year.
Weeks of supply held = (2 / 25) *52 = 4.16 weeks
