8-69 Use the Repricing Model to Determine the Funding Gap

question 22

Multiple Choice

8-69 Use the repricing model to determine the funding gap for a maturity bucket of 91 days.

• A)-$60 million.
• B)-$150 million.
• C)$0.
• D)-$250 million.
• E)-$300 million.

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Definitions:

Estimated Fixed Costs

Forecasted expenses that do not vary with the level of production or sales over a specific period of time.

Net Sales

This refers to the total revenue from sales minus returns, allowances for damaged or missing goods, and discounts.

Contribution Margin Ratio

The percentage of each sales dollar that is available to cover the fixed costs and provide an operating income.