Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,217 Sale price each $1,700 Total labor hours 46,672 Wage rate $12 /hour Total materials $60,000 Total energy $4,000 Calculate the productivity in sales revenue/labor expense. (Round your answer to 2 decimal places.) Productivity

Answer:

The errors have resulted in the overstatement of net income by $9,400. Actual net income is $35,600

Explanation:

Expired rent is usually accounted for by debiting rent expense and crediting prepaid rent account. As such this is an additional expenses that will be deducted from sale to get the net income.

Depreciation expense on asset is recorded by debiting depreciation expense and crediting accumulated depreciation. Again, it is an additional expenses that will be deducted from sale to get the net income.

Supplies used is a debit to supplies expense and a credit to the supplies account (B/s). Hence, it is an additional expenses that will be deducted from sale to get the net income.

Hence the total additional expense to be recorded

= $3,500 + $4,100 + $1,800

= $9,400

When recorded, net income

= $45,000 - $9,400

= $35,600

Answer:

1. $1,296,000

2. $972,000

Explanation:

Pretax income is the difference between the total sales and the total expenses. The total expense is made up of the fixed cost and variable cost. The variable cost is dependent on the level of activities. Contribution margin is the net of total sales and total variable cost. The ratio is the ratio of contribution margin to sales.

As such, contribution less fixed cost gives the pretax income.

Contribution margin = $164,000 + $160,000

= $324,000

25% = $324,000/total sales

Total sales = $1,296,000

Total variable costs =  $1,296,000 - $324,000

= $972,000

Answer:

[tex]\left[\begin{array}{ccc}&Q1&Q2\\beginning&30,900&25,750\\receipts&254,410&398,610\\disbursement&-272,950&-372,806\\interest&0&-206\\subtotal&12,360&50,892.3\\minimun&25,750&25,750\\Financing&&\\beginning&0&13,390\\payment/loan&13,390&-13,390\\ending&13,390&0\\&&\\ending cash&25750&37502.3\\\end{array}\right][/tex]

Explanation:

Q1

proceeds from disposal of equipment 12360

sales                                                     242050

outlay:

salaries          144200

overhead cost 79310

S&A cost          51500

depreciation     (2060)

Q2

interest revenue from investment        7210

sales                                                 391400

outlay:

salaries                         144200

overhead cost              103000

S&A cost                         72100

depreciation                   (2060)

purchase of equipment 51500

interest payment                206

To prepare the cash budget for the first two quarters of 2020, calculate the cash inflows and outflows for each period. The cash inflows include collections from clients and sale of equipment. The cash outflows include professional salaries, overhead costs, selling and administrative costs, income tax payment, and purchase of equipment.

To prepare the cash budget for each of the first two quarters of 2020, we need to calculate the cash inflows and outflows for each period. For the first quarter, the cash inflows include collections from clients of $242,050 and the sale of equipment for $12,360. The cash outflows include professional salaries of $144,200, overhead costs of $79,310, selling and administrative costs of $51,500, and income tax payment of $0. The ending cash balance for the first quarter would be calculated by adding the beginning cash balance of $30,900 to the cash inflows and subtracting the cash outflows.

For the second quarter, the cash inflows include collections from clients of $391,400 and interest from investments of $7,210. The cash outflows include professional salaries of $144,200, overhead costs of $103,000, selling and administrative costs of $72,100, income tax payment of $4,120, and purchase of equipment for $51,500. The ending cash balance for the second quarter would be calculated by adding the beginning cash balance of $30,900 to the cash inflows and subtracting the cash outflows.

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Answer:

Bridging relationships

Explanation:

Social networking analysis refers to analyzing the interaction between different social groups, people and individuals of an organization.

Such an analysis establishes linkage between diverse people who differ in their attitudes, beliefs and demeanor.  

Such an analysis is aimed at gaining an understanding of a group and it's dynamics, it's key members and deciphering the nature of their association.

Bridging relationships refers to bridging or reducing the gap between a group and laying emphasis upon the relations via which diverse people are interconnected and information is shared between them.

Answer:

The price per charged should be $2.5

Explanation:

Disutility cost per 0.25 mile is 25 cents. Therefore, the cost per mile is 4x25 cents = $1

The disutility for the entire 5 miles is $5. This implies that 1 stand can easily satisfy the

condition of the disutility not being more than $5.

Thus, the seller should operate 1 stand.

Now, the total transportation cost can be minimized if the stand is set up in the middle of

the beach. In that case, the sunbathers at the farthest two ends would face a cost of $2.5

(2.5 miles x $1)

This means that in order to satisfy the disutility condition, the total of the price charged,

and disutility incurred should be less than $5.

Therefore, $2.5 + Price < $5. This means that Price $2.5

In order to maximize the profits, he would charge the maximum possible price.

Thus, the price per charged should be $2.5

Answer:

A $500 travelers check

Explanation:

A $500 travelers check is the most liquid asset because it can be directly exchanged for currency. In fact, travelers checks are so liquid that they are included in the money aggregate M1, the money supply measure that is the most liquid.

Answer:

BEP 340 units or $193,800 of sales

Income Statment  :

Sales revenue  340 units x $570   193,800

Variable Cost  340 units x $456  (155,040)  

Contribution                                      38,760‬

Fixed cost                                         (38,760)

Operating Income                                     0

Explanation:

The break even points is the point at whch operating income is zero.

[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]

570 - 456 = 114 each units generates 114 dollar to aford the fixed cost and make a gain

[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]

[tex]\frac{38,760}{114} = Break\: Even\: Point_{units}[/tex]

BEP 340 units

In dollars 340 x $570 each  = 193,800

Answer:please refer to the explanation section

Explanation:

Unit contribution Margin = selling price per unit - Variable cost per unit

Unit contribution Margin = $ 570 -  $ 456 = $ 114

                        VOLUME         UNIT COST ($)     TOTAL ($)

Sales                  600 units $570                        342000

Variable costs    600 units   $ 456               -273600

Contribution margin  600 units      $114                       68400

Total Fixed Costs                                         -38760

Net income                                                   29640

Break Even Point (units) = Fixed Costs/(Selling price - variable cost)

Break Even Point (units) = 38760/(570 - 456) = 340 units

Answer:

A - Insulate the online user from a seeming liability that could arise from using someone's else resources.

B - It is widely acknowledged that the provisions of the DMCA have reduced a large number of legal procedures, instead of stopping copyright infringement.

C - The public believe that some of the DMCA provisions threaten fair use of contents, stifle competition and eventual innovation in public policy participation.

Explanation:

A - Insulate the online user from a seeming liability that could arise from using someone's else resources. The foremost objective of DMCA provisions is to strike a balance between copyright owners and the users of such. Inadvertently, it us expected that there will be attendant cases and issues emanating from such. DMCA seeks to provide adequate guidelines to addressing such.

B - It is widely acknowledged that the provisions of the DMCA have reduced a large number of legal procedures, instead of stopping copyright infringement. As there's tendency to subject the most noblest of initiative to abuse, DMCA is not an exception. The manipulation and selective interpretation of the guidelines have thus stifle many legal proceedings that could otherwise have occasioned. Resultantly, threatening the effectiveness of its foremost objective.

C - The public believe that some of the DMCA provisions threaten fair use of contents, stifle competition and eventual innovation in public policy participation. The manipulation and selective interpretation of the guidelines have thus diluted its pristine mission of establishment. Thus, fair play I'm in the use of contents, robust competition and intellectual innovation are under threat by the constant misapplication of DMCA provisions.

The safe harbor provisions of the DMCA protect ISPs from liability for infringing content uploaded by their users. However, this creates weaknesses from the perspectives of the entertainment industries and the public.

The Digital Millennium Copyright Act (DMCA) includes safe harbor provisions that provide benefits and protections for Internet service providers (ISPs). An important benefit of these provisions is that they protect ISPs from being held liable for infringing content uploaded by their users. This encourages ISPs to host user-generated content and allows them to focus on their primary function of providing Internet access.

However, from the perspective of the entertainment industries, a weakness of the safe harbor provisions is that they may limit their ability to hold ISPs accountable for hosting pirated content. This puts the burden of policing and enforcing copyright infringement on the content creators themselves.

From the perspective of the public, an important weakness of the safe harbor provisions is that they may allow ISPs to escape liability even if they are aware of infringing content on their platforms. This can make it challenging for content creators and rights holders to protect their intellectual property rights.

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Answer:

X = $6,300,000

Y = $7,000,000

Z = 10%

Explanation:

NB: Investment = Price * Number of shares

For Series A:

Number of shares = 1,000,000

Price = Number of shares/Initial Investment

Price = 1,000,000/100,000 = 10

Investment = 1,000,000 * 10 = $10,000,000

For Series B

Price = $0.75

Number of shares = 500,000

Investment = 500,000 * 0.75 = $375,000

For Series C

Price = $1.25

Number of shares = 300,000

Investment = 300,000 * 1.25 = $375,000

For Series D

Price = $3.50

Number of shares = 200, 000

Investment = 3.50 * 200,000 = $700,000

Total shares = 1,000,000 + 500,000 + 300,000 + 200,000 = 2,000,000

Y = Post-money valuation for the series D funding round

Y = Series D investment * (total post investment share)/(Shares issued for series D)

Y = 700,000 * (2,000,000)/(200,000) = $7,000,000

Y = $7,000,000

X = Pre-money valuation for the series D

X = Post-money valuation - New Investment (Series D)

X = $7,000,000 - $700,000

X = $6,300,000

Z = Percentage of the firm that Dan owns after the last funding round

Z = (Number of shares of series D/ Total number of shares)*100%

Z = (200,000/2,000,000)*100%

Z = 10%

Answer:

                                         Dr.          Cr.

Adjusting Entry

December 31

Account Receivable     $8,500

Revenue                                       $8,500

Reversing Entry

January 1

Revenue                        $8,500

Account Receivable                     $8,500

Cash Receipt

January 15

Cash                               $14,500

Revenue                                        $14,500

Explanation:

On December 31 the accrued revenue is recording to comply with the accrual principle by debiting account receivable and crediting revenue account.

A reverse entry of accrued revenue was made on January 1 to eliminate its effect. it does not mean that company has negative revenue it is made to adjust the the cash receipt event of the transaction when its effect will be nil by a credit entry with.

Cash received on January 15 is recorded against the revenue.

To journalize reversing entries for Ocean Breeze Associates, an adjusting entry is first made on December 31 to record the accrued revenue of $8,500. Then, a reversing entry is made on January 1st to cancel this. Lastly, on January 15, when the cash is received, it's divided and recorded between Accounts Receivable for $8,500 and Service Revenue for $6,000.

Here are the steps for journalizing reversing entries for Ocean Breeze Associates:

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Answer:

April,

May,

And in June;

Explanation:

In April, the company purchased raw materials (Sugar and Peppermint) for $100,000. The entries posted are debit to Inventories and Credit to Cash account (both amounting to $100,000 each).

As such in April,

It produces its candy and sells it to distributors in May for $150,000, but it does not receive payment until June.

When the sale is made in May, the entries required is Debit accounts receivables $150,000 and Credit Sales revenue $150,000. Also, Debit cost of goods sold $100,000 and Credit Inventories $100,000.

Net income is the difference between sales and cost of sales.

As such in May,

For June,

Payment for goods sold in May were received, entries posted are debit to cash account and a credit to accounts receivables (both balance sheet accounts), hence;

Candy Canes Inc. incurred expenses in April with no sales, resulting in zero for all values. In May, they made sales but received no money, resulting in positive net income but negative cash flow. In June, they received the payment, resulting in positive cash flow but no change in net income.

In April, Candy Canes Inc.'s sales, net income, and net cash flow are all zero because no sales were made, though the company did spend $100,000 on sugar and peppermint.

In May, the firm's sales amounted to $150,000. The net income was $50,000 (which is $150,000 in sales subtracting the $100,000 in expenses). However, the net cash flow was -$100,000 because payment was not received in May, and the company spent $100,000 in April.

In June, there were no new sales or expenditure, but because Candy Canes Inc. received payment for the May sales, its net cash flow was $150,000, while the net income remained zero.

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If TOMS decided to enter the tea business and they purchased part of a foreign tea company to join with them to found TOMS Teas, this would be an example of __________.

a. direct foreign investment

b. contract manufacturing

c. a joint venture

Answer:

This would be an example of a joint venture.

Explanation:

A joint venture (JV) is a corporate agreement in which two or more organisations agree to share money to carry out a specific mission. This role can be a new project or a new enterprise.

Each of the partners shall be liable in a joint venture (JV) for benefit, loss and related costs. The corporation is therefore its own organisation, independent from other corporate interests of the members.

These are alliances, which can carry on some formal system in a conversational context.

The common usage of JVs is to join a global industry partner with such a local company.

This is an example of a joint venture, where TOMS and a foreign tea company are pooling resources to create and distribute TOMS Teas.

If the shoe company TOMS decided to enter the tea business and purchased part of a foreign tea company to join with them to launch TOMS Teas, this would be an example of a joint venture. A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project. In this case, the specific task would be creating and distributing TOMS Teas. This concept is common in international business and allows for risk sharing, access to local market knowledge, and shared resources and technology.

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Answer:

Explanation:

exponential smoothing alpha = 0.5

formula = Previous demand x Alpha + previous forecast x (1 - alpha)

26   32   40   27    30

26  26  29  34.5  30.75

week 2 forecast

26x0.5 + 26x0.5 = 26.

week 3 forecast

32x0.5 + 26x0.5 = 29

use the same procedure for week 4 and week 5

week 6

30x0.5 + 30.75x0.5 = 30.375

Demand Forecast for week 6 = 30.38

Answer:

The optimal bundle is 6 pairs of dress shoes and 3 pairs of Crocs.

Explanation:

From the question,

Allowance (M) = $450; Price of dress shoes, Pd = $50; Price of crocs, Pc = $50

Note: MRS-price ratio, MUC- marginal utility from consuming casual Crocs ,MUD- marginal utility from consuming dress shoes

Optimal bundle is determined where MRS = Price ratio

MRS = MUC/MUD = 20DC/10C2 = 2D/C

Price ratio = Pd/Pc = 50/50 = 1

So, 2D/C = 1

       Therefore, C = 2D

Budget constraint:  M = Pd*D + Pc*C

So, 50D + 50*(2D) = 450

      50D + 100D = 150D = 450

So, D = 450/150 = 3

C = 2D = 2*3 = 6

To maximize her utility, Tracy should buy twice as many pairs of casual Crocs as dress shoes. This is found by equalizing the marginal utility per dollar spent on each type of shoe and considering her budget constraint of $450.

In economics, consumers aim to maximize their utility given their budget constraints. The optimal consumption bundle is achieved when the marginal utility per dollar spent on each good is equal. Therefore, to find Tracy's optimal consumption bundle, we need to set the marginal utility per dollar spent on dress shoes equal to the marginal utility per dollar spent on casual Crocs.

The marginal utility per dollar spent on dress shoes is MU Subscript Upper D/Price of D = 10Upper C squaredC2/$50. The marginal utility per dollar spent on casual Crocs is MU Subscript Upper C/Price of C = 20DC/$25. Setting these equal to each other, we get (10C2/$50) = (20DC/$25). Simplifying, we find that Tracy should buy twice as many pairs of Crocs as dress shoes to maximize her utility.

However, we also need to take into account her budget constraint of $450. Let D be the number of pairs of dress shoes and C be the number of pairs of casual Crocs. So, we have the equation $50D + $25C = $450. Substituting D = C/2 into this equation, we can solve for the optimal number of dress shoes and Crocs for Tracy.

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Answer:

A. Check the attached image for the payoff matrix

B. Confess

C. Confess

D. 3 years. They could have avoided this by confessing.

Explanation:

The above question is known as the prisoner's dilemma. It is a form of game theory. It analyses the best option for a player in a game without regard for what the other player does.

The dominant strategy is the best decision for the player without considering what the other player does or without cooperation between the players. The dominant strategy for each of the prisoners is to confess because if one confesses and the other doesn't, the one that confesses goes free. If both prisoners confesses, they get 10 years each. These is a better option than not confessing and getting either 3 years or 15 years of prison sentence.

Because both players don't confess, hence they get 3 years in prison. They could have avoided the sentence by confessing.

I hope my answer helps you

The problem depicts a classic example of the 'prisoner's dilemma' in game theory. Both Bob and Tom's dominant strategy is to confess to reduce their potential sentence, however, if they cooperated and remained silent, they would both face a significantly lesser sentence of 3 years each. The risk, however, lies in trusting each other to remain silent.

This problem is a classic example of the prisoner's dilemma in game theory. The payoff matrix for Bob (B) and Tom (T) would look like this:

To answer the questions:

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Answer:

b. minimum price that can be legally charged for a product or service

Explanation:

A price floor represents a minimum price that can be legally charged for a product or service. A price floor is the lowest legal price that can be paid in markets for goods and services, labor, or financial capital. There are many  goods which have price floors imposed  by the government; for example agriculture good. In an organizations, unions may also impose price floors which could be the minimum rates for the staff etc.

Answer:

Detailed solution is given below:

Journal entries are the entries that record the transaction of the company that depicts the inflow and outflow of the cash in the firm. The transactions that come in the firm are termed as the debit and which goes out is credit.

A journal entry is an act of reporting or tracking the progress of any monetary or quasi activity. An accounting journal method utilizes & displays a company's debit and credit amounts. Every recording in the journal entry can be either a deduction or addition.

The Journal entries have been attached below.

To know more about the entries of the journal record, refer to the link below:

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Answer:

B. historic return over long time periods.

Explanation:

Variance is a metric applied in statistics to determine the squared deviation of a random variable from its mean value.

The variance of a return of investment is a measure of the historic return over large time periods. The historical return approach is more commonly used in the exercise of investing. It follows the data which is a finite set of historical returns of investment and assumes that each possible result has an equal probability.

Answer:

Expected Return:

Expected Price in one year

= (90x 0.10)+ (105x 0.20)+ (125x 0.40)+ (155x 0.20)+ (175x 0.10)

= 128.5 Expected dividends in one year

= 3.40

Expected Return = 123.64 Expected Return=[ (Expected Price + Expected Dividends)] / Current Price= >[ (128.50 + 3.40)–123.64]/123.64= 0.066806859 or 6.68%

Standard Deviation: To measure the volatility, the estimated return must be determined with each price point.

Expected return = = [(Expected Price + Expected dividends) – Current Price] / Current Price

Current Price     Expected Price     Dividend       Expected Return

123.64                   90                          3.4                     -24.46%

123.64                   105                         3.4                     -12.33%

123.64                   125                         3.4                      3.85%

123.64                   155                         3.4                      28.11%

123.64                   175                         3.4                      44.29%

Variance = [(-0.2446 – 0.0668)^2 x 0.10] + [(-0.1233 – 0.0668)^2 x 0.20] + [(0.0385 – 0.0668)^2 x 0.40] + [(0.2811 – 0.0668)^2 x 0.20] + [(0.4429 – 0.0668)^2 x 0.10] = 0.040574089

Standard Deviation = (0.040574089)1/2 = 0.20143011 or 20.14%

Explanation:

Answer:

B) the supply of Web pages increases and the price falls.

Explanation:

The equillibrum price is where demand intersects supply, that is the price at which consumer is willing to buy is the same as the price seller is willing to sell.

If there was only 1 web page created per month at $200, and now more web design firms enter the market. The supply of web pages will increase from 1, as all the companies will want to present their product.

This results in excess supply and will cause price to fall as is illustrated in the attached diagram. As seen the equillibrum price reduces from P1 to P2.

Answer:

The supply of web pages increase and the price falls, which then increases the demand for web pages and the demand curve shifts rightward ( C )

Explanation:

If the equilibrium price of a web page is $200 when fewer web design firms are producing the web pages. the number of web pages will increase when more web design firms enter the market.

As more design firms go into producing more web pages the supply of web pages will be increase and this will lead to lower equilibrium price for the web pages in the market. based on this market factors the demand will increase because buyers would buy more when prices of goods and services fall. the increase in demand will be represented with the demand curve shifting to the right.

Answer:(1)The personal income tax, (2)The tax paid in one state differs from state to state.(3) Disposable income

Explanation:

A tax is a compulsory levy in which every law abiding citizens with a means of income is expected to pay to the government through the agency responsible for collection of taxes in their country. It is the civic duty of every citizens to pay tax.However, the payment of taxes depend on a lot of factors such as

Salary : The level of income of individuals determine the tax that such individuals will pay. It is known as personal income tax. The higher the income, then the higher the tax. While, the lower the income then the lower the tax.

State you live in : The state where the tax payer reside determine how much tax the tax payers will pay in terms of the kind of taxes to pay to the government. The kind of taxes differs from state to state.

Cost of living : This is the total amount of money it will cost an individual's to provide themselves with the basic necessities of life such as food, clothing and shelter. When the cost of living is high, it reduces the standard of living of the people because when tax has been removed from their income what is left for an individual for saving and spending known as disposable income will not be enough to meet their basic need.

The amount of taxes one pays is affected by their salary, the state they live in, and the cost of living in that state. Higher salaries and living in states with higher taxes or cost of living can lead to paying more in taxes, impacting one's disposable income.

The amount of taxes one pays is significantly influenced by multiple factors. Firstly, your salary plays a critical role; the United States employs a progressive tax system, meaning the more you earn, the higher the percentage of your income you will pay in taxes. Additionally, the state you reside in can drastically affect your tax burden. Some states have higher tax rates or additional taxes on top of federal taxes, while others may have no income tax at all. Furthermore, cost of living is another crucial factor. In areas with a higher cost of living, residents might find their taxes going further towards public services like education and infrastructure, affecting their disposable income.

Understanding these variables is essential for managing your finances effectively and planning for the future. Employing strategies like budgeting, and investing for retirement early can help mitigate the impact of taxes on your income. It's also important to be aware of the potential consequences of failing to pay taxes, which can include fines or even jail time.

Answer:

Differences among Absorption and Variable Costing:

Contrasts in overall gain happens because of distinction in treatment of fixed overhead under over two costing draws near.  

Preferences of variable costing in dynamic:-  

Answer:

Letter C is correct. Social Justice Theory.

Explanation:

The most suitable alternative for this issue is letter c, Theory of Social Justice.

This theory refers to an ethical and political philosophy that states that there is justice beyond those recognized by the economic law of supply and demand, civil and criminal law, and the social and moral rules and structures of society. According to this theory, social justice refers to relationships that must be fair to all groups in society, that is, all people must have equal access to health, well-being, justice, opportunities, etc., regardless of their conditions. political, economic or other.

Social justice theory can punish or favor individuals regardless of their characteristics, choices or actions.

In the above question, we can say that social justice is adequate, because in economic terms, it is able to grant opportunities, redistribution of wealth and income to groups considered oppressed by certain oppressors.

Final answer:

Anthony's vote aligns with Social Justice Theory, which seeks a fair allocation of resources in society and particularly relates to Rawls's theory involving the veil of ignorance.

Explanation:

Anthony's vote aligns with the philosophy of Social Justice Theory, which focuses on the equitable distribution of opportunities, resources, and rights within a community. This theory is concerned with creating a society where there is a fair allocation of community assets, making sure that individuals in higher income brackets do not reduce the availability of subsidized housing meant for those in greater need.

The concept of social justice invokes the “veil of ignorance” in Rawls's theory. It is a method of designing a just society by making decisions without knowledge of one's position within the society, ensuring fair and unbiased policies. Lastly, while utilitarian principles, such as those discussed in the theory of Utilitarianism, are important in many aspects of social policy and ethics, the specifics of the housing bill discussed do not directly pertain to this philosophy which aims to maximize the overall happiness or welfare of the society.

Answer:

$1.56, $1.56

Explanation:

Break-even point on a Put option is the Net of premium cost. Your exercise price is $1.60, it includes the premium price paid to the seller. The break-even point for the will be $1.56 ( $1.60 - $0.04 ) and for the seller it will also be $1.56 because there is no transaction cost is involved and the premium received is an income for him.

Final answer:

The break-even point is $1.56 for both the buyer and the seller of a pound put option with a premium of $.04 and an exercise price of $1.60. This point is reached by subtracting the premium from the exercise price. Speculative trading carries risks and potential rewards, depending on market movements.

Explanation:

The break-even point for the buyer of a pound put option with a premium of $.04 per unit and an exercise price of $1.60 is $1.56. This is because the buyer of the put will pay the premium and needs the market price to be low enough to cover the cost of the premium when they exercise the option. To calculate the break-even point for the buyer, you subtract the premium from the exercise price ($1.60 - $.04 = $1.56).

For the seller of the put option, the break-even point is also $1.56 because this is where the seller does not gain or lose money from the premium received after considering the potential obligation to buy the underlying asset at the exercise price if the buyer exercises the option.

It is important to remember that in options trading, speculators can make a profit if their predictions about the market movement are correct, but there are no guarantees, and they can also suffer losses if the market does not move as anticipated.

Answer:

[tex]r=-60.8\%[/tex]

Explanation:

Rate of Return

The rate of return RoR is the net gain or loss on an investment over a time period, expressed as a percentage of the investment's initial cost.

If C1, C2, ..., Cn are the net cash flows at each period of investment, then the actual value of each one of them is

[tex]A_i=C_i(1+r)^{-i}[/tex]

where r is the rate of interest assumed for the investment.

The total value of the cash flows is

[tex]A=\sum C_i(1+r)^{-i}[/tex]

We have the final value of the investment at the present time

[tex]A=800,000\ ;\ C_1=250,000\ ;\ C_2=25,000[/tex]

We can find the r as the RoR of the investment by setting the equation

[tex]800,000=250,000(1+r)^{-1}+25,000(1+r)^{-2}[/tex]

Simplifying by 25,000 and rearranging

[tex](1+r)^{-2}+10(1+r)^{-1}-32=0[/tex]

This is a second-degree equation for [tex](1+r)^{-1}[/tex]. Solving the equation we get only one positive value:

[tex](1+r)^{-1}=2.5498[/tex]

Or, equivalently

[tex]r=-0.608[/tex]

[tex]r=-60.8\%[/tex]

We get a negative RoR

Answer:

The question is not complete, the complete question is written below:

Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each.

(a) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be?

(b) How many shirts must Gina sell to break even?

What is the total revenue for this?

The answers are:

a.) Total Revenue = $300; Total variable cost = $160

b.) Break even number of shirts to be sold = 34 shirts; Total revenue for this = $510

Explanation:

a.) Total revenue is the total amount realized after the sales of 15 shirts. To calculate this, we are told that she sold 20 shirts for $15 each, therefore total revenue = Number of shirts sold × price of one shirt

∴ Total revenue = 20 × 15 = $300.

The variable cost of production is the cost that changes with the volume of products produced. In this example, the variable cost is the cost of materials used in making shirts, while the rent on equipment is the fixed cost, because its price remains the same irrespective of the volume of production. To calculate the total variable cost, we will multiply the variable cost of one shirt, with the total number of shirts produced;

cost of 1 shirt = $8

∴ cost of 20 shirts = 8 × 20 = $160

b.) The break even point is the point where the total cost equals total revenue. In order to calculate this, we will first of all calculate the total cost, which includes both the variable and fixed costs.

Total cost: Total fixed cost + Total variable cost

Total fixed cost = $350 (cost of renting equipment)

Total variable cost = 8 × 20 = $160 (calculated above)

∴ Total fixed cost + Total variable cost = 350 + 160 = $510

Therefore, to break even, the total revenue must also equal this cost price of $510. Now to calculate the number of shirts sold that equals this amount;

$15 = 1 shirt

∴ $510 = 1/15 × 510 = [tex]\frac{510}{15} = 34[/tex]

Therefore when 34 shirts are sold, total revenue = total cost.

Total revenue for 34 shirts = $510 (calculated and explained above).

Answer:

The level of production x that will maximize the profit is: 22,966

Explanation:

C(x) = 50,000 + 100x + x³

R(x) = 3400x

P(x) = R(x) - C(x)

      = 3400x - [50,000 + 100x + x³]

      = 3400x - 50,000 - 100x - x³

      = 3300x - 50,000 - x³   .................... (A)

P'(x) = 3300(1) - 0 - 3x²

       = 3300 - 3x²

At a critical point, P'(x) = 0

∴   0 = 3300 - 3x²

  3x² = 3300

    x² = 1100

     x = ± [tex]\sqrt{1100}[/tex]

P"(x) = -6x

P([tex]\sqrt{1100}[/tex]) = -6 ([tex]\sqrt{1100}[/tex])   < 0

by second derivative, 'P' max at    x = [tex]\sqrt{1100}[/tex] = 33.17 (rounds)

since x =  [tex]\sqrt{1100}[/tex] ,

recall that P(x) = 3300x - 50,000 - x³ from equation (A)

Therefore, Maximum Profit

P([tex]\sqrt{1100}[/tex]) = 3300[tex]\sqrt{1100}[/tex] - 50000 - [tex]\sqrt{1100} ^{3}[/tex]

              = 3300(33.17) - 50,000 - 33.17³

              = 109461 -50,000 - 36495.26

              = 22,965.74

Maximum profit is 22,966 to the nearest whole number

To find the level of production x that maximizes profit, calculate the profit function by subtracting total cost (C(x)) from total revenue (R(x)). Then, find the value of x that makes marginal revenue equal to marginal cost. This requires knowledge of calculus to differentiate the profit function.

To determine the level of production x that will maximize the profit, we first need to calculate the profit function which is the total revenue (R(x)) minus the total cost (C(x)). In this case, the Profit function P(x) is equal to R(x) - C(x) = 3400x - (50,000 + 100x + x3).

Then, to find the level of output that maximizes profit, you would typically differentiate this profit function, set the derivative equal to zero, and then solve for x. This involves calculus, which might not be within the scope of your current studies.

Without using calculus, it is hard to pinpoint the exact value of x that maximizes the profit. However, it is possible to say that the profit-maximizing level of output will occur when marginal revenue (the additional revenue from selling one more unit) equals marginal cost (the additional cost of producing one more unit), which is a fundamental principle in economics. So, you would try to find an x such that the increase in 3400x from increasing x by 1 is equal to the increase in (50,000 + 100x + x3) from increasing x by 1.

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Answer:

Option "B" is the correct answer to the following statement.

Explanation:

Given:

Exchange rate of 1 Baht= $0.022

Expected inflation in united states (Assume) = 3% = 0.03

Expected inflation in Thailand (Assume) = 10% = 0.10

Computation:

After 1 year  rate of 1 Baht in Dollar

The price in US = 1 × (1+0.03) = $1.03

The price in Thailand = 1 × (1+0.10) = 1.10 baht

1 baht = 1.03×0.022÷1.1 = $0.0206

Therefore, 1 baht = $0.21 (approx)

Answer:

Endowment effect

Explanation:

Endowment effect is the effect which is defined as the when the ownership rises or increases the value of the product or the item.

For example, when it is asked to set a price for an item to be exchanged, the sellers usually ask for a much higher price for the product, than the buyers are willing to pay. This effect is called as the endowment effect because the ownership increase the value linked with the product or item.

Answer:

The correct answer that a dividend is a better choice is . a. Regarding taxes, which would benefit Aleshia the most? The $114,000 dividend because after taxes she would have $ from the dividend and $ 86,640 from the bonus.

Explanation:

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders.

A tax (from the Latin taxo) is a compulsory financial charge or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.