<span>According to the cdc the price elasticity of demand for cigarettes is : -0.4 %
The negative amount of price elasticity indicates that the product is inelastic, which means that the demand of the product wouldn't be much affected by the change in price.
According to CDC,the addictive substance of the product caused the customer to keep buying it even though it became more pricey, which caused the inelastic demand.</span>
Answer: The proper amount of net income as at December 31, 2018 is $58,750.
Explanation: Trojan Corporation adjusted net income for the year ended 31 December 2018 would be as follows:
Net income (unadjusted) - $85,000
a) Adjust for amortization of prepaid insurance of $1,250 per month ($15,000/12 * 3) - (3,750)
b) Reclassify service revenue to unearned revenue (liability) - (2,500)
c) Reclassify supplies expense to supplies (asset) - (2,000)
d) Adjust for interest expense of $550 per month (12% of $55,000 * 4 / 12) - (2,200)
Net income (adjusted) - $58,750
Answer with Explanation:
The Value-added salespersons are the one with better qualification, trainings, experience and have thorough understanding how the sales mechanism would better work in different circumstances and thus are far much better than the transaction salespeople. Furthermore, they are the one who knows what the customer is desiring and this helps them in adding value to their operations and product. Whereas transactional salesperson add very little value to sell the product because the customer knows about the product features and the presence of the transactional salesperson doesn't have any significant impact on the customer perception.
Answer:
Market Principal notes that there should be no arbitration in the efficient market unless there is some arbitration so an efficient market system can quickly neutralize the situation.
The futures market for May, in the example above, is trading at $3.82 while the spot price is $3.45. The spot price month is listed but carriage costs and transportation are given as $0.20 and $0.03 per month.
This gives us a total price of $3.68 and this means the futures market is priced at a premium of $0.14.
3.82-= 0.14 (3.45 + 0.20 + 0.03)
This is not normal, of course, and traders will start shortening futures prices when going on the spot contracts for long. This would drive down the price of the futures while increasing the spot price, which should stabilize at $3.75.
Nevertheless, it is necessary to remember that in such equation there is also a borrowing fee which must also be taken into account. If the interest rate is 6 percent a year so it also takes into account a monthly finance fee of 0.5 percent of the contract value.
Answer: You enter into Euro/USD forward contract.
Explanation:
Based on the information given in the question, the best way to manage the dollar currency risk is to enter into Euro/USD forward contract.
A forward contract is a contract between two parties whereby an asset is being bought it sold at a particular price in the future. It should be noted that forward contract is good for speculations.
