Answer:
James operates a restaurant in a seaside tourist town. It is winter and all the tourists have left
Rex invests in new computer software that will automate his bookkeeping.
Explanation:
In winter, the patronage at James' resturant would drop because tourists would have left. Because demand at the resturant has dropped, James would reduce his demand for Labour which are his staffs. He would let some staffs go temporarily to reduce costs .
If Rex invests in a software that automates his book keeping, he wouldn't need an accountant to help with his book keeping, so demand for labour would fall.
After Katie's competition closes down, more people would patronise Katie. Katie's demand for Labour would increase because of the influx of customers.
Amy would need labour to obtain wood; her demand for Labour would increase.
If school is just resuming, there would be a high influx of people into the bookstore, the bookstore would increase its demand for Labour because of the high influx of customers .
I hope my answer helps you.
Answer:
a.) The proportional up movement , u, for the currency can be calculated using the following formula:
u = eStd Dev * Square root of t
u = e0.06*square root of 0.25
u = 1.0305
b.) Probability of up movement, p , = (a - d) / (u - d)
where a = ert where r = 0.025, t = 0.25
a = e0.025*0.25 = 1.0063
d = 1 / u = 1 / 1.3050 = 0.7663
p = (1.0063-0.7663) / (1.3050-0.7663)
p = 0.46
1-p = 1-0.46 = 0.54
c) Price of an American Call Option on the currency : we use binomial tree for that , as follows: The amounts below line indicate the option price and figures above line indicate the underlying asset price which is 0.55555
Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.
Answer:
d. $2,676
Explanation:
The computation of the horizontal value is shown below:
FCF1 = (100 × 1.06) = 106
FCF2 = (106 × 1.06) = 112.36
FCF3 = (112.36 × 1.06) = 119.1016
FCF4 = (119.1016 × 1.06) = 126.247696
FCF5 = (126.247696 × 1.06) = 133.8225578
Now
Horizon value is
= FCF5 ÷ (Cost of capital - Growth rate)
= 133.8225578 ÷ (0.08 - 0.03)
= $2,676
Hence, the correct option is d.
Answer:
Wilturner Company
The journal entries to record the labor for the Assembly Department would include:
Debit Work in Process $155,000
Credit Direct labor $90,000
Credit Variable factory overhead $39,000
Credit Fixed factory overhead $26,000
To record the direct and indirect labor costs of the assembly department.
Explanation:
a) Data and Analysis:
Direct labor $90,000
Variable overhead (labor) $39,000
Fixed overhead (labor) $26,000
b) The direct labor cost = $90,000 and Factory overhead costs = $65,000 ($39,000 + $26,000)
