I believe the correct option is B.
<span>Provided:
Payments made by check Year 1 Year 2 Year 3
Yes: 225 175 125
No: 275 325 375
</span><span>If the proportion of shoppers paying by check remained unchanged among the three years, the anticipated number of shoppers who pay by check in year 1 is 175.
Each year records 500 customers, and the percentage of customers paying by check diminished from 45% to 25%. Assuming constant proportions, I interpreted the data as an average. Therefore, (225+175+125) / 3 = 525 / 3 = 175.</span>
Response:
The buyer has the option to pursue specific performance of the contract. In real estate transactions, to be able to take legal action for specific performance, the buyer must have the necessary funds (or mortgage) ready for closing. It’s challenging to claim damages due to the unwillingness of the seller to proceed with a house sale, as houses are unique; similar properties may vary greatly in value depending on their locations.
By pursuing specific performance, the non-breaching party requests that the other party fulfill their obligations under the contract.
Answer and Explanation:
a. Below is the computation of the contribution margin for each segment:
(in millions)
Details Investor Advisor Services Services
Revenue from
operations $1,681 $1,660
Plus:
Depreciation $171 $154
Contribution
Margin $1,852 $1,814
2. Next, we assess the decrease in operating income
(in millions)
Details Combined services Institutional Services
Total Revenue $9,368 $4,771
Less:
Variable expense $5,702 $2,919
($2,919 + $2,783)
Contribution
margin $3,666 $1,852
Less:
Fixed costs -$325 -$171
Net earnings $3,341 $1,681
So from the previous calculations, it shows that the net operating income has decreased by
= $3,341 - $1,681
= $1,660 million
The variable costs can be calculated as
= Service revenues minus income from operations minus depreciation expense
