27. The factory in which GHI is produced can be used to manufacture another product, MNO. The total variable cost and expenses per unit of this new product is P9.50 and 2,500 units can be sold at P10.75 each. If MNO is introduced and GHI is discontinued, the total effect on income will be *

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A: Formulas for different financial ratios are as follows.

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A:

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Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.