Answer:
d. Buy in-the-money calls on oranges
Explanation:
A call option is an option to buy a product or asset at a stated price at a later date. The risk of call option is capped at premium for buying the option. The best financial engineering strategy for Coolmist is to buy in the money calls on oranges. This gives Coolmist a right to buy oranges at predetermined price at a later date. This minimizes the risk of upward price strike of oranges.
Answer: E. The firm's ability to differentiate its product
Explanation:
The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.
Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.
Answer: 75%
Explanation:
The probability that demand is less than or equal to the stocking level will be calculated thus:
Underage Cost (Cu) will be given as:
= 3 × Overage Cost(Co) = 3Co
Critical Ratio for seller is given as:
= Cu/(Co+Cu)
= 3Co/(Co + 3Co)
= 3Co / 4Co
= 75%
= 0.75
Therefore, the answer is 75%.
The difference between the standard cost of a product and its actual cost is called a cost variance. Therefore the statement is true.
<h3>What is the objective of variance?</h3>
Changing across all of the pieces of information in a data set, variance is a measurement of distribution. It enables us to estimate how far away a set of factors are from each other.
To describe the variation or difference between the standard cost of a product and its actual cost the use of cost variance is done. It is utilized to estimate the financial performance of any project.
Therefore, the statement is True.
Learn more about Variance, here:
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Answer:
Contribution margin per unit = $45.90
Contribution margin as sales percentage = 43.97%
Explanation:
As for the information provided we have,
Normal Sales = Normal sales per month, before the overseas order.
For such normal sales, the cost and sales data has been provided,
Selling price per unit = $104.40
Variable costs = Direct material + Direct Labor + Variable Manufacturing + Variable selling & Administrative
= $43.80 + $10.40 + $1.90 + $2.40 = $58.50
Contribution margin per unit = Selling price - Variable cost per unit = $104.40 - $58.50 = $45.90
Contribution margin as sales percentage = 
43.97%
