On January 2, 2017, You Invest $50,000 in the Lizbiz

question 77

Multiple Choice

On January 2, 2017, you invest $50,000 in the Lizbiz Mutual Fund, a load fund that charges a fee of 5 percent. The fund's returns were 14.6 percent in 2017, -6.4 percent in 2018, and 15.2 percent in 2019. On December 31, 2019, you redeem all your shares. The dollar value is

• A) $66,722.27.
• B) $15,200.00.
• C) $58,695.74.
• D) $33,366.25.
• E) $10,000.00.

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Definitions:

Incremental Analysis

The process of comparing the additional costs and benefits of different alternatives in order to make decisions.

Unprofitable Segment

A division or business unit within a company that consistently generates losses instead of profits, affecting the overall financial health of the company.

Manufacturing Variances

Differences between the actual costs and standard (expected) costs incurred during production, which can be categorized into material, labor, and overhead variances.

Incremental Analysis

The process of identifying the financial data that changes under alternative courses of action, used for decision-making in business.