Answer:D.None of the option is correct, the correct answer is Buy; savings=$203,000
Explanation:
The firm will Incurred the total fixed overhead it decides to make.
The total cost of making 6000 units is $163*6000=$978,000
The total cost of buying is $144*6000= $864,000 and when we deduct $89,000 to be saved from fixed overhead by buying we have a total cost of( $864,000-$89,00) =775,000.
This invariably means the company will save ($978,000-$775,000) which is equal to= $203,000 by buying.
Answer:
Airline 2 offers low prices on long-distance flights and has long service times for its planes between flights.
Explanation:
Low Cost providing strategy is the strategy in which the services are provided at a lower cost and but the quality of service is acceptable, and is in fact good.
Where the price along with quality is decreased the low cost strategy is not followed.
As in the case of Airline 2 the cost is decreased for passengers and at the same time the service is also decreased.
As there is a long gap of time in between the flights.
Answer:
b. $.66
Explanation:
The computation of the per share value for the one year is
Given that
Current Price = $43
Possible Prices = $42 and $46
Now
u = [($46 - $43) ÷ $43] + 1
= 1.06977
And
d = 1 - [($42 - $43) ÷ $43]
= 0.9767
And,
Risk-Free Rate = T-Bill Rate = Rf = 4.1 %
Now the up move price probability is
= [(1 + Rf) - d] ÷ [u - d]
= [(1.041) - 0.9767] ÷ [1.06977 - 0.9767]
= 0.69088
And,
Exercise Price = $ 45
Now
If the Price is $42, so Payoff = $0
And
if the Price is $46, so Payoff =is
= ($46 - $45)
= $1
Finally the call price is
= [0.69088 × 1 + (1 - 0.69088) × 0] ÷ 1.041
= $0.66367
= $0.66
Answer:
Yes she should purchase this preferred stock.
Explanation:
Return on investment as a percentage = return/capital invested * 100
For Aeryn to decide whether she should purchase this preferred stock, its return on investment should be higher than or equal to 8%. The return on investment of this preferred stock is $40/$475 * 100 = 8.42%, which is higher than her required return therefore she should purchase the preferred stock.
Solution:
The home sells for = $120000
The commission that is paid by the seller is 3 percent
Therefore, commission = 3% of $120000 = $3600
The sales-person is on a 65 percent commission schedule with her broker which means that the saleperson gets the 65 percent amount of the commission.
Thus, the amount which is received by the salesperson from the given transaction is = 65% of $3600 = $2340
Therefore, the salesperson receives $2340 amount from the said transaction.
