You Just Inherited $15000

question 201

Multiple Choice

You just inherited $15000. You are willing to invest up to the entire amount. The plan is to invest some of it in a bond fund that yields 5% per year and the rest of the invested amount in a stock fund that yields 8% per year. You want at least $900 in investment income per year. Let b be the amount you invest in the bond fund and let s be the amount that you invest in the stock fund. Is in the solution set of this system of inequalities?

• A) Yes
• B) No

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Definitions:

Direct Materials Cost

The expense incurred for raw materials that are directly incorporated into a finished product.

T-Accounts

A simplified form of accounting ledger that uses a two-column format to show the increases and decreases in different financial accounts.

Job-Order Costing System

An accounting method that accumulates costs for individual units or small batches of production, often used for custom orders.

Direct Materials

Raw materials that are directly traceable to the production of a specific product.