Answer: Sell four December coffee future contracts at $2.00 per pound
Explanation:
Based on the scenario in the question, the number of contracts that is required for hedging the entire crop will be gotten by dividing the total number of crops by the pounds that are available in one contract. This will be:
= 150,000/37,500
= 4 contracts
Therefore, the answer will be for Jarvis to sell four December coffee future contracts at $2.00 per pound
Answer:
Cash flow year 0 (110,000)
or in other way to express it: a cashoutflow for $110,000
Explanation:
Initial net cahs outflow
this will be the acquisition of the machine cost plus the increase in the working capital for the company
machine cost: all cost necessary for acquire the machien and get it operational
supplier list price 85,000
installation cost <u> 15,000</u>
total cost 100,000
Increase in Working Capital Cost 10,000
As these are cost they are negative so we have a cashouflow
Total cashflow (110,000)
Answer:
a. At lower levels, management have fewer controllable costs
Explanation:
The opposite is true, lower-level management have more controllabe costs than higher level management because top management focuses on the general strategy of the firm, while lower management focuses on the specific production processes.
It is in these specific production processes that many controllable costs arise. A production line supervisor (part of lower-level management) can directly control some variable costs such as energy used, amount of input, or even work hours.
Its like renting but you have the option to buy at the end i believe.
When the intervention rises the price stage of goods, then the incentive to supply extra desires increases and consequently growing manufacturers' surplus. So policy market can motivate both client and producer surplus.
A tax causes consumer surplus and producer surplus (earnings) to fall.. some of those losses are captured inside the tax, however, there may be a loss captured with the aid of no celebration—the value of the devices that could be exchanged had been there no tax. those lost gains from trade are called deadweight losses.
For each monetary transaction, there can be both producer surplus (or profit) and client surplus. The mixture–or blended–a surplus is called the economic surplus.
Learn more about policy market here: brainly.com/question/25754149
#SPJ4
