Answer:
14,560 units.
Explanation:
Variable costs for Product A = $140,000 / 7,000 units
Variable costs for Product A = $20
<u>Avoidable costs for Product A:</u>
Advertising $23,800
Rent $17,300
Supervisor's salary <u>$31,700</u>
Avoidable costs for Product A <u>$72,800</u>
<u />
Contribution margin per unit = $25 - $20 = $5
Economically indifferent units = Avoidable costs for Product A/Contribution margin per unit
Economically indifferent units = $72,800 / $5
Economically indifferent units = 14,560 units
So therefore, the number of units of Product A that would need to be sold next year is 14,560 units.
Answer:
$875
Explanation:
Generally, the relationship can be expressed as interest rate = Coupon Payment / Face Value.
Initially a 7% market rate a investor gets 7% which gives a coupon payment of $70 because the face value of 1000.
Hence 70/1000 = 7%
Subsequently with the interest rate change, we can look for the bond price.
Substitute 8% for the interest rate and find the revised bond value which will fall as rate increases
$70/bond price = 8%
Then $70/ bond price = 0.08
0.08 x bond price = $70
bond price = $70 / 0.08 = $875
Answer:
Put options give the holder the right to sell the underlying stock to the seller of the put option.
Put options are advantageous when the price in the market falls below the strike price of the option because the buyer will be able to sell at above market value and make a profit.
The asking price for a strike price of $9.00 is listed to be $0.33 and this is the premium paid by the buyer of the Put Option.
<h2>
1. Return if stock sells for $8.00</h2>
= Amount received/ Amount spent
= (No. of shares * ((Strike price - Market price) - Premium paid) ) / (No. of share * premium)
= (2,300 shares * (($9.00 - 8.00) - 0.33))/ ( 2,300 * 0.33)
= 2.03
= 203 %
<h2>
2. Return if stock sells for $10.00. </h2>
As this is an option, the investor can decide not to sell to the seller. The market price is higher than the strike price so they will not sell to the seller of the option and the return will be;
= (No. of shares * - Premium paid) ) / (No. of share * premium)
= (2,300 shares * - 0.33)/ ( 2,300 * 0.33)
= -1
= -100 %
Answer: Antitrust law
Explanation:
The Clayton Antitrust Act of 1914, was a part of the United States antitrust law with the aim of adding further substance to the United States antitrust law regime.
The Clayton Act was to prevent anticompetitive practices. It was enacted in 1914 with the objective of strengthening Sherman Antitrust Act. When Sherman Act was enacted in 1890, the regulators realized that that the act had some weaknesses which made it impossible to prevent anti-competitive practices in businesses so the Clayton Act addressed the issue.
Answer:
Stage 2
Explanation:
The first four stages of Kohlberg's model of moral reasoning:
- In stage 1, moral reasoning is based on the fear of punishment.
- In stage 2, moral reasoning is based on individualism and what is best for the individual only. She knows that what she is doing is wrong, but agrees to do it anyway because she will benefit from it.
- In stage 3, moral reasoning is based on acting in the best interests of others.
- In stage 4, moral reasoning is based on duty to society, respect for authority, and maintaining the social order.
