Answer: Loss of $950
Explanation:
You bought the contract at $2.29 per bushel.
The corn contract at the time was actually $2.10.
You bought the futures contract for more than the spot price for the same time period so this is a loss.
Loss = Loss per unit * number of units
= (2.29 - 2.10) * 5,000
= 0.19 * 5,000
= $950
Answer:
total estimated cash collections = $300,050
Explanation:
estimated collections during June:
collections of credit sales from May = $257,000 x 65% = $167,050
collections from credit sales before May = $50,000
collections from credit sales during June = $332,000 x 25% = $83,000
total estimated cash collections = $300,050
the write offs and the bad debt provisions are not included in this calculation.
Answer:
Option B
Explanation:
In simple words, avoidable costs refers to those expenditures which can be avoided by the management of the business if they want to as such expenditures are usually made for additional support.
Irrelevant costs include factors which will not be impacted by a management action, whether positively or negatively. Consequently, unnecessary factors, such as static overhead as well as sunken factors, are overlooked in making the choice. Nonetheless, in addition to ultimately save the company it is important for a management to be able to discern an insignificant expense.
Answer:
False
Explanation:
Credentials are an official verification, from an accredited source, attesting to capability. Credentials are an official verification, from an accredited source, attesting to capability.
Answer:
What is entirely true about this contract is:
The contract is a VALID contract but is also a VOIDABLE contract on the part of Larry but NOT on the part of Sprint.
Explanation:
As a minor, Larry (he was under the age of 18 when he signed the contract with Sprint) lacks the contractual capacity to enter into the contractual relationship with Sprint. But since he has signed the contract in exchange for the purchase of the cell phone, Larry can either honor the deal or void the contract. This is why the contract is said to be valid but voidable at Larry's behest. However, after Larry has turned 18, if he has not done anything to void the contract, then the contract with Sprint can no longer be voided.