Profit Is the Unit Contribution Margin Multiplied by the Number

question 48

True/False

Profit is the unit contribution margin multiplied by the number of units minus the fixed component of the total costs (TC).Profit is TR minus TC,however at the unit contribution margin V (variable cost)has already been removed;therefore the above statement is true.

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Definitions:

Invested

Money that is allocated for a particular purpose, such as buying stocks or bonds, in the hope of generating a financial return.

Strip Bond

A type of bond where the principal and regular coupon payments have been separated and are sold individually.

Compounded Semiannually

Interest calculated twice a year on the initial principal and previously earned interest.

Investment Yield

The profits made from an investment during a specified timeframe, represented as a proportion of the original investment's value.