Answer:
-$14 per share
Explanation:
The exercise value is the monetary value of Mrs. Jennifer's call option if she was going to exercise it. The exercise value is calculated by subtracting the current stock price from the strike price = $60 - $74 = -$14.
Since no one would exercise a stock warrant knowing that they will lose money, we can expect that Mrs. Jennifer does not exercise her call option. If she really wanted to purchase a stock from LPM it would be cheaper to buy it at its current market price.
Explanation:
December 31, 2016: To record accrued wages for one day (10 workers × $145) = $1,450.
January 4, 2017: To record accrued and current wages.
Wages expense = 10 workers × 3 days × $145 = $4,350
Cash = 10 workers × 4 days × $145 = $5,800.
See attached photo.
Answer and Explanation:
a. The computation of the weighted average contribution margin ratio is shown below:
The Contribution margin ratio is
= (Combined contribution ) ÷ (Sales)
= ($60,000 + $180,000) ÷ ($1,000,000)
= ($240,000) ÷ ($1,000,000)
= 0.24
b. Now the break even point in dollars is
= Fixed cost ÷ contribution margin ratio
= $300,000 ÷ 0.24
= $1,250,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
