Privately held business do not have readily available trading prices. to offset problems with diversification caused by private held business assets investors can the in their investment portfolios for securities.

Knowledge check 01 taylor company has current sales of 1,000 units, at a selling price of $190 per unit, variable costs per unit of $76 and fixed expenses of $96,000. the company believes sales will increase by 300 units, if the company introduces sales commissions as an incentive for the sales staff. the change will decrease the selling price to $175 per unit, increase variable cost per unit to $100 and decrease fixed expenses by $20,000. what is the net operating income after the changes? increase of $21,500 decrease of $30,000 increase of $24,500 decrease of $22,000