1. What is the relationship between forward rates and the market’s expectation of future short rates? Explain in the context of
1 answer:
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Answer:
depreciation per year: 9,000
<u>operating income: </u> 41,000
Explanation:
Q: Adjusted the records to reflect the use of the cooktop.
Under straight-line the company will recognize the same amount of depreciation over the course of the assets life. At year-end the company will adjsut for the loss in value for the asset generated for the past of time.
depreciation per year: 9,000
<u>operating income:</u>
revenues 72,000
salaries expense: (25,000)
depreciation per year: (9,000)
total 41,000
Answer:
24.7215
Explanation:
Given;
Discount = 50%
Regular price, p = $8
cost of cake, c = $5
salvage value, s = 50% of $8 = $4
Mean = 20
Standard deviation, σ = 7
Now,
Underage cost, Cu = p - c
= $8 - $5
= $3
Overage cost, Co = c - s
= $5 - $4
= $1
P ≤
P ≤
P ≤ 0.75
The Z value for the probability 0.75 is 0.6745
The optimal stocking level = Mean + ( z × σ )
= 20 + 0.6745 × 7
= 24.7215