All categories

2 years ago

Why do people start business?

Business

1 answer:

max2010maxim [7]2 years ago

3 0

Answer:

Because certain individuals rather be self-employed and given a more flexible schedule. Entrepreneurs have the ability to use their talents or ideas to gain profit.

Explanation:

You might be interested in

Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7

yarga [219]

Answer:

(A)

we are given for last year

cost of goods sold was $7.5 million and inventory was $1.5 million

firstly , we will find average cost of sold good on week basis

=cost of goods / total number of weeks in a year

so, we get

average cost of sold good on week basis as :

=\frac{7.5}{52}= 0.1442 million

now, we can find weeks supply

Weeks supply=Investment in inventory/ Average cost of sold good on week basis

week supply = 1.5/0.1442 =10

so, week supply = 10 ...........Answer

(B)

we are given for this year

cost of goods sold is $8.6 million and inventory investment is $1.6 million

firstly , we will find average cost of sold good on week basis

=cost of goods / total number of weeks in a year

so, we get

average cost of sold good on week basis as :

=\frac{8.6}{52}= 0.1654 million

now, we can find weeks supply

Weeks supply=Investment in inventory/ Average cost of sold good on week basis

week supply = 1.6/0.1654 =10

so, week supply = 10 ...........Answer

(C)

yes , reduced by 7%

6 0

4 years ago

Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry. PCC owes Mitsubishi Heavy Industry 500 million ye

Illusion [34]

Answer:

Explanation:

In the case of forwarding hedge:

The future dollar cost will be = FX receiveable ÷ Foward exchange rate

= 500 million yen ÷ 110 yen/dollar

= $4.55 million

For money market hedge:

Present value of yen payable = $500 \ yen \div (1+ \dfrac{5}{100})$

$= \dfrac{500 \ yen }{1.06}$

= 476.20 million yen

PCC would convert dollars to yens at the spot market rate and borrow yen such that it would get 500 million yen at maturity(i.e after one year) for Mitsubishi to receive it.

Dollars needed to get these yen = 476.30 yen ÷ 124 yen/dollar

= $3.84 million

Future Value of these dollars (for comparison with the foward market hedge) = $3.84 × (1 + 0.08)

= $4.15 million

Hence, the money market hedge is better as the dollar cost is lower than the forward market hedge to meet the obligation.

On the maturity date, the spot rate is 110 yen/dollar

Ad the strike price = 0.0081 /dollar

It is better for the company to go for the strike price due to the fact that it has a lower rate than the spot rate.

Now;

The premium amount = 500000000 yen × 0.014 dollar / yen

= 70000 dollars

However; the Future dollar-cost payable = 500000000 yen × 0.0081 dollar /yen

= 4050000 dollars

By applying option hedge, the total dollar cost required to meet the obligation = (4050000 + 70000) dollars

= 4120000 dollars

The dollar cost needed from the option hedge required to matching the forward hedge is determined by subtracting it from the premium amount:

Thus;

for option hedge, dollar cost needed = (4550000 - 70000) dollars

= 4480000 dollars

The required future spot rate = 500000000/4480000

= 111.61 yen/dollar

As a result, at the future spot rate of 111.61 yen/dollar, PCC will be unconcerned about and indifferent about the option or forward hedge because the future dollar cost of meeting the obligation will be the same.

3 0

3 years ago

Based on Jacobs (1954). The Carter Caterer Company must have the following number of clean napkins available at the beginning of

belka [17]

Do you still need help with this question?

8 0

3 years ago

Nataro, Incorporated, has sales of $742,000, costs of $316,000, depreciation expense of $39,000, interest expense of $34,000, an

LenaWriter [7]

Based on the information given the net income is $278,870.

<h3>Net income </h3>

Sales $742,000

Less Costs ($316,000)

Les Depreciation ($39,000)

EBIT $387,000

Less Interest ($34,000)

Taxable Inc. $353,000

Taxes (21%) $74,130

($353000×21%)

Net Income $278,870

($353,000-$74,130)

Inconclusion the net income is $278,870.

Learn more about net income here:brainly.com/question/15530787

3 0

3 years ago

In the long run, when marginal cost is above average total cost, the average total cost curve exhibits

serg [7]

The answer is B

Have a good day

6 0

3 years ago

Why do people start business?​

Why do people start business?