For the initial purchase, Geraldine already has the gain of
$40,000 - $20,000 = $20,000
Because he succcesfully bought the land below the market value.
After the sale, the total gain would be
$20,000 + ($45,000 - $20,000)
$20,000 + $ 25,000
= $45,000
Answer:
a. Long
b. $375.00
Explanation:
a. If interest rates decrease over the period of investment, Treasury bond prices will increase. Thus, Dudley Savings Bank should take a long position in the futures contracts on the Treasury bonds. As T-bond prices go up, so will T-bond futures prices.
b. Given a long position:
Net profit = Sale price of futures − Purchase price of futures
= $107,687.50 − $107,312.50 = $375.00
Purchase price of futures = 107 − 100 = 107 10/32% × $100,000 = $107,312.50
Sale price of futures = 107 − 220 = 107 22/32% × $100,000 = $107,687.50
Explanation:
Answer: (C) Decline
Explanation:
The decline stage is one of the type of last stage in the product life cycle as it basically representing the actual behavior of the product in the market which results in the form of negative growth.
The decline stage basically demonstrating about the decrease sales and also the profit of the products in an organization.
According to the given scenario, the television western is one of the type of category that entering into the decline stage due to the change in the taste of the customers.
Therefore, Option (C) is correct answer.
lower prices and better product quality
Answer:
The budgeted operating income for 7,200 chairs sold is $13,826.
Explanation:
<u>Wicker Chair Co. budgeted operating income</u>
Sales (7,200 chairs × $52) $374,400
Less Expenses
Variable (7,200 chairs × $39.20) ($282,240)
Fixed ($78,334)
Budgeted Income / (loss) $13,826
Conclusion :
The budgeted operating income for 7,200 chairs sold is $13,826.