Answer:
The answer is $475.
Explanation:
We have the writer of the put contract has the obligation to buy the share at $50 ( as the put is the at-the-money put) in 3 months time. The writer of the put also has received the premium at $650 for assuming the obligation to buy at the predetermined price.
Thus, the expected returns is calculated as below:
-[0.60 x 100 x Max[$0,$50 - ($50)(1.1)] + 0.30 x 100 x Max[$0,$50 - ($50)(0.95)] + 0.10 x 100 x Max[$0,$50 - ($50) (0.80)] + $650 = - [0.6 x 100 x 0 + 100 x 0.3 x 2.5 + 0.1 x 100 x 10] + 650 = $475.
Answer:
The correct answer is a. Design a descriptive protocol for each spa service including clear delivery standards.
Explanation:
A descriptive study is a type of methodology to apply to deduce a good or circumstance that is being presented; It is applied describing all its dimensions, in this case the organ or object to be studied is described. Descriptive studies focus on collecting data that describes the situation as it is.
The classic descriptive studies are case series studies and prevalence studies.
Answer: Please refer to Explanation
Explanation:
The terms will be listed in bold at the end of the statement. If you require further clarification please do comment.
a. The costs deducted from the contribution margin to determine the responsibility margin. TRACEABLE FIXED COSTS.
b. Cost to produce plus a predetermined markup. COST-PLUS TRANSFER PRICE
c. Fixed costs that are readily controllable by the manager. NONE
d. A subtotal in a responsibility income statement, equal to responsibility margin plus committed fixed costs. PERFORMANCE MARGIN.
e. The subtotal in a responsibility income statement that is most useful in evaluating the short-run effect of various marketing strategies on the income of the business. CONTRIBUTION MARGIN.
f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. RESPONSIBILITY MARGIN.
g. The amount used in recording products or services supplied by one business unit to another. TRANSFER PRICE.
Answer:
$1,100
Explanation:
Computation for the Work-in-Process transferred to the finished goods warehouse on April 30
Work-In-Process Inventory, April 1 300
Direct materials used in production 225
Direct labor costs incurred 400
Manufacturing overhead costs 350
Less Work-In-Process Inventory, April 30 ($175)
Work-in-Process transferred to the finished goods warehouse $1,100
Therefore the Work-in-Process transferred to the finished goods warehouse on April 30 will be $1,100
Answer: $4032.85
Explanation:
The following can be derived based on the information in the question:
Sales = $11,250
Less: operating cost = $5,500
Less: depreciation = $1,250
Operating income = $4500
Operating income = $4500
Less: Interest charges = $218.75
Taxable income = $4281.25
Taxable income = $4281.25
Less: Taxes = $1498.4
Net income = $2782.85
Net cash flow = Net Income + Depreciation
= $2782.85 + $1250
= $4032.85
N.B:
Interest charges= 6.25% × $3500
= 0.0625 × $3500
= $218.75
Taxes = 35% × $4281.25
= 0.35 × $4281.25
= $1498.4
