Answer:
The lowest selling price Geneva should accept for this purchase order is $20 per unit
Explanation:
Geneva produced dolls with Variable manufacturing costs $20 per unit.
Geneva receives a purchase order to make 5,000 dolls as a one-time event and this order is during a period when Geneva does have sufficient excess capacity.
Fixed cost did not change and there was no Variable selling and administrative costs for this order.
The lowest selling price Geneva should accept for this purchase order = Variable manufacturing costs = $20 per unit
Answer:
$3,000
Explanation:
Data provided in the question
Gain received while exchanged = $3,000
Received cash = $5,000
Based on the above information, the Cindy recognize the gain i.e $3,000 which is received while exchanged it
Therefore in the given case, the Cindy have to recognize the gain for $3,000
The cash amount received should be ignored
Answer:
If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000
.
Explanation:
Shares = 5000
Price of shares = $105
Sell Price = $112
The profit associated with the passive strategy = $(112 - 105) × 5000
= $ 35,000
Now with covered call also included in the strategy the profit/loss from covered call can be calculated as
Strike Price = $110
Spot Price = $112
Total Shares on which Call options are sold = 50 × 100 = $5000
Total Premium received = 5000 × 4 = $20000
(Spot Price - Strike Price ) × Total Shares
= $(112 - 110) × 5000
= $10,000
Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000
= $ 10000
Hence the profit associated with the covered call writing strategy
= $35,000 + $10,000
= $ 45,000
Correc Question: Organizational structure can have a significant impact on an organization's financial performance. True or False.
Answer:
true
Explanation:
Organizational structure is a system that shows outlines the activities of an organization in order to achieve the goals of the organization. Organizational structure also determine what financal performance as the organization uses this medium to determine how much is meant to the paid to employees as salaries
Cheers.
