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vlabodo [156]
3 years ago
9

On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100

,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions.Monday: $97,406.25Tuesday: $98,000.00Wednesday: $100,000.00After Monday's close the balance on your margin account will be ________.a. $2,000b. $3,137.50c. 2,700d. 2,262.50
Business
1 answer:
sergij07 [2.7K]3 years ago
7 0

Answer:

Please find the detailed answer as follows

Explanation:

The case is pretty simple, and I’ll to be simple in explanation below:

Facts:  

--Transfer price per unit should be atleast equal to the relevant cost per unit.

--Relevant cost per unit = Variable cost per unit + Contribution margin lost + Avoidable fixed cost.

--Since it is stated that fixed cost wont be affected and that there is idle capacity available, there wont be any ‘Contribution margin lost’ on outside sale AND ‘avoidable fixed cost.  

--If Division A transfers, it would transfer at the relevant cost of $ 19 per unit, which is equal to the variable cost per unit.  

--If Division A didn’t transfer, Division B will buy from outside at rate of $ 24 per unit.

Hence, Division B will purchase $ 24 per unit when it could get from Division A at $ 19.

Thereby, Division will be paying $ 5 per unit extra on 16100 units.

Division B and hence, the company as a whole will be WORSE by $ 80,500

[16100 units x $ 5 per unit]

Correct Answer = Option #3: Worse off by $ 80,500 each period.

The same is illustrated as attached image.

Download xlsx
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A company has the following account balances: Sales revenue $2,000,000: Sales Returns and Allowances $250,000: Sales Discounts $
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Answer:

0.25 or 25%

Explanation:

The computation of the gross profit rate is shown below:

Gross profit rate = Gross profit ÷ Net sales revenue

where,

Net sales revenue = Sales revenue - Sales Returns and Allowances - Sales Discounts

= $2,000,000 - $250,000 - $50,000

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And, the Cost of goods sold is $1,275,000

So, the gross profit is

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So, the gross profit rate is

= $425,000 ÷ $1,700,000

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6 0
3 years ago
A proposed new project has projected sales of $159,800, costs of $80,840, and depreciation of $5,640. The tax rate is 24 percent
never [62]

Answer:

Explanation:

In order to calculate the OCF, we first need to calculate net income.

We have:

Sales: $159,800

  • Cost:  -$80,840
  • Depreciation  $5,640

EBT : $73,320

  • Tax = $73,320*24% = $17,596.8

Net income : $55,723.2

Using the most common financial calculation for OCF, we get:

OCF = EBIT + Depreciation - Taxes

OCF = $73,320 + $5,640 - $17,596.8

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The top-down approach to calculating OCF yields:

OCF = Sales - Costs - Taxes

OCF = $159,800 - $80,840 - $17,596.8

OCF = $61,363.2

The tax-shield approach is:

OCF = (Sales - Costs)(1 - tC) + tCDepreciation

OCF = ($159,800 - $80,840)(1 - 0.24) + 0.24*$5,640

OCF =$61,363.2

And the bottom-up approach is:

OCF = Net income + Depreciation

OCF = $55,723.2 +$5,640

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Hope it will find you well

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Alexa has a commercial laundry service that has been growing rapidly. She wants to continue to grow the business, but she needs
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Answer:

                        MARIGOLD CORPORATION

                         Income Statement (Partial)

                  For the year ended December 31, 2020  

Income from continuing operation                                   $10,634,000

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Loss from operation of discontinued         $320,700  

restaurant division(net of tax)  

Loss from disposal of restaurant division   $206,700     <u>$527,400</u>

(net of tax)

Net Income                                                                         <u>$10,106,600</u>

Earnings per share

Income from discontinuing operations  A  1.06

[10,634,000/10,000,000]

Loss from discontinued operations  B        <u>0.05</u>

[527,400/10,000,000]

Net Income A/B                                             <u>1.01</u>

7 0
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Which phase defines gross domestic product (GDP)
OverLord2011 [107]
The answer is letter b. 
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