The Doughboys Pizza Company Sells Pizzas in Two Different Sizes-Medium

question 47

True/False

The Doughboys Pizza Company sells pizzas in two different sizes-medium and large.The two products sell in equal numbers.The contribution margin of a medium pizza is $16,and the contribution margin of a large pizza is $18.The weighted average contribution margin is $17.

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Definitions:

Well-diversified Portfolio

An investment strategy that spreads risk by allocating investments among various financial instruments, sectors, or other categories.

Variability of Returns

The extent of fluctuation in the returns on an investment over a certain period of time, often used as a measure of investment risk.

Business-specific Risk

This is the risk associated with the unique factors impacting a specific company or industry, excluding broader market or economic risks.

Unsystematic Risk

The risk associated with a particular company or industry, which can be mitigated through diversification.