Virtually impossible to counterfeit
Answer:
The correct answer is: less than $22.
Explanation:
Price discrimination is a situation where a firm charges different prices for the same product. Different price is charged generally from consumers with different price elasticities.
A firm charges a higher prices from the consumer with lower price elasticity because with a higher price there demand will decrease less than proportionate.
Lower price is charged from consumers having a higher price elasticity of demand because these consumers will decrease their demand more than proportionate at a higher price.
So if a firm charges $22 in the market segment with less elastic demand, the price in the more elastic market segment will be lower than $22.
Answer:
The expected 1-year interest rate 2 years from now should be 8.11%
Explanation:
The Zero-coupon rate bond is a bond that does not offer the coupon payment. This coupon is issued at a deep discount value. The only cash flow associated with this bond is the face value at the maturity date.
Use following equation to calculate the The expected 1-year interest rate 2 years from now
( 1 + 1 years maturity rate)^1 x ( 1 + 2 years maturity rate)^2 = ( 1 + 3 years maturity rate)^3
( 1 + 1 years maturity rate) x ( 1 + 6.60%)^2 = ( 1 + 7.10%)^3
( 1 + 1 years maturity rate) x ( 1.0660)^2 = ( 1.0710)^3
( 1 + 1 years maturity rate) = ( 1.0710)^3 / ( 1.0660)^2
( 1 + 1 years maturity rate) = 1.228481 / 1.136356
1 + 1 years maturity rate = 1.081071
1 years maturity rate = 1.081071 - 1
1 years maturity rate = 0.081071
1 years maturity rate = 8.1071%
1 years maturity rate = <u>8.11%</u>
Answer:
Order processing= $846.67 per order
Explanation:
Giving the following information:
Activity costs:
Wages and salaries= 420,000
Depreciation= $170,000
Occupancy= $190,000
Activity Cost Pools:
Order Processing:
Wages and salaries= 0.3
Depreciation= 0.25
Occupancy= 0.45
Order processing 300 orders
First, we need to calculate the total overhead cost for order processing:
Wages and salaries= 0.3*420,000= 126,000
Depreciation= 0.25*170,000= 42,500
Occupancy= 0.45*190,000= 85,500
Total= $254,000
Now, using the following formula, we can determine the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order processing= 254,000/300= $846.67 per order
