Answer:
Has capacity constraints in the form of limited resources
Explanation:
When the company has capacity constraints in the form of limited resources they should prioritize those goods with highest <em>contribution margin per unit of the limiting factor</em> instead of goods with the <em>highest contribution margin per unit</em>. This ensures that resources are distributed first to where they are more profitable.
Therefore, A firm that decides to emphasize those goods with the highest contribution margin per unit may have made an incorrect decision when the company has capacity constraints in the form of limited resources.
Answer:
Explanation:
1. Incremental cash flow is the potential increase or decrease in cash flow from an investment this could be positive or negative.
In this case in expanding a product line or launching a new project incremental cash flow could be.
a. Positive: this is the increase in cash flow due to the product launch and expansion.
b. Negative: this is the decrease in cash flow due to the product launch and expansion
2. a. Payback:
profit gotten from an initial investment equal to what was initially invested
b. Net Present Value(NPV)
This is the difference between present value of income and present value of expenditure over a period of time.
c. Internal Rate of Return(IRR)
Measure the rates of returns for an investment excluding external factors such as risk free rates, inflation e.t.c
d. Profitability Index Method (PIM)
this is the lowest acceptable measures of the rates of returns for an investment excluding external factors such as risk free rates,inflation e.t.c
The factor that would not affect the position of the supply curve for cranberries is the popularity of cranberry drinks.
The supply curve is a graph that shows the relationship between price and the quantity supplied. The supply curve is positively sloped. A change in the position of the supply curve can either be an outward shift or an inward shift. An outward shift indicate an increase in supply and an inward shift indicates a decrease in supply.
An increase in the price of agricultural land and the cost of fertilizers increases the cost of producing cranberries . This would lead to an inward shift of the supply curve. On the other hand, a decrease in the price of agricultural land and the cost of fertilizers would lead to an outward shift of the supply curve.
The development of a new pest control for cranberry production would lead to an outward shift of the supply curve as more cranberries can be produced.
Please check the attached image for a graph showing an increase in supply. To learn more about the supply curve, please check: brainly.com/question/1915798
Answer:
u get free stuff out of it
Answer:
C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Explanation:
given data
State 1 State 2 State 3
Probability 25% 50% 25%
Spot rate $ 2.50 /£ $ 2.00 /£ $ 1.60 /£
P* £ 1,800 £ 2,250 £ 2,812.50
P $4,500 $4,500 $4,500
solution
company holds portfolio in pound. so to get hedge, they will sell that of the same amount.
we get here average value of the portfolio that is
The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)
The average value of the portfolio = 2278.13
so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
