The Anderson Balanced Mutual Fund Charges a Sales Load of 4.85

question 11

Multiple Choice

The Anderson Balanced mutual fund charges a sales load of 4.85%. If you invest $15,000, how much of your investment will actually be used to purchase shares in the fund?

• A) $14,250.00
• B) $14,272.50
• C) $14,400.00
• D) $14,485.00
• E) $15,000.00

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Definitions:

High-low Method

A way of attempting to understand cost behavior by analyzing the difference in cost between the highest and lowest volume levels.

High-low Method

A technique used in managerial accounting to estimate variable and fixed cost components of a cost by analyzing the highest and lowest activity levels.

Electrical Cost

Electrical cost refers to the expenses incurred from the use of electricity, often a significant component of utility costs for homes and businesses.

Machine-hour

A measure of the amount of time a machine is run, often used as a basis for allocating manufacturing overhead to products.