1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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
You might be interested in
On December 1, 2021, Coronado Industries exchanged 48000 shares of its $10 par value common stock held in treasury for a used ma
Romashka-Z-Leto [24]

Answer:

$2,880,000

Explanation:

Calculation to determine what Coronado's total stockholders' equity will increase by

Increase in total stockholders' equity =[(48000*45)-(48000 * (60-45))]

Increase in total stockholders' equity =$2,160,000+$720,000

Increase in total stockholders' equity =$2,880,000

Therefore the total stockholders' equity will increase by $2,880,000

4 0
3 years ago
Nathan has been unable to trust banks since the failure of his savings and loan bank. He claims that storing his hard-earned mon
Lerok [7]

Answer:

Nathan's contention is wrong.

Explanation:

Storage of money at home involves the opportunity cost of losing out on income that would've been generated had the same money been invested elsewhere or deposited with a bank.

Secondly, money stored at home is vulnerable to theft and other forms of risks.

Thirdly, stored money at home does not contribute to any economic benefit since such money is out of circular flow of money in the economy. So it yields no return.

Thus, Nathan's contention of stored money at home being costless is wrong.

4 0
3 years ago
The opportunity cost of earning an advanced college degree is that:
Mamont248 [21]
The answer would be B
7 0
3 years ago
Read 2 more answers
Jack and Jill are the only two residents in a neighbourhood, and they would like to hire a security guard. The value of a securi
allsm [11]

Answer:

Jack and Jill

a. With a proportional tax of 1 percent on income, it would be enough to pay for the security guard $120.

Jack would pay $ __40___.

Jill would pay $ __80___.

This tax _will____ be enough to pay for the security guard.

b. Based on net benefit from the guard:

Jack would pay $ __43___.

Jill would pay $ _ 77____.

Would both Jack and Jill vote for this scheme? __No___ Jack will feel cheated by Jill in the sum of $3.  Jack will likely prefer the 1% based on income.

Explanation:

a) Data and Calculations:

Value of a security guard for Jack = $50 per month

Value of a security guard for Jill = $90 per month

Total value of a security guard for both Jack and Jill = $140 ($50 + $90)

Cost of hiring a guard = $120 per month

Jack's monthly earnings = $4,000

Jill's monthly earnings = $8,000

Total monthly earnings for both Jack and Jill = $12,000

a. Proportional tax of 1 percent on income = $120 ($12,000 * 1%)

Jack will pay $4,000 * 1% = $40

Jill will pay $8,000 * 1% =    $80

Total = $120

b. Net benefit scheme:

Jack will pay $50/$140 * $120 = $43

Jill will pay $90/$140 * $120 =    $77

Total = $120

6 0
3 years ago
At which stage of new product planning does the management select the marketing campaign, identify regions to cover, and decide
denpristay [2]
The answer for your question is B
8 0
3 years ago
Read 2 more answers
Other questions:
  • Carmen is having her basement refinished. She notices that the flooring was installed hastily and is uneven. Who should she talk
    14·1 answer
  • Which of these statements regarding Regal Marine is TRUE? Product design is a critical decision for the firm. Regal uses a three
    10·1 answer
  • X-inefficiency refers to a situation in which a firm:
    12·1 answer
  • Richards Corporation uses the FIFO method of process costing. The following information is available for October in its Fabricat
    14·1 answer
  • The presence of _____________________ in transactions involving goods can easily cause a ______________________ if the result is
    14·1 answer
  • Camille Sikorski was divorced in 2017. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille’s
    13·1 answer
  • Which of the following measures the relationship between cost of merchandise sold and the amount of inventory carried during the
    13·1 answer
  • Your gross income is 10,000 a month before taxes, and income taxes are estimated at a rate of 20%. In addition, your debt is $2,
    13·1 answer
  • A portion of FICA that is paid to provide eligible retired workers and
    7·1 answer
  • Individuals who score high in ____ tend to take their jobs seriously and act responsibly at work.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!