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3 years ago

F the decrease in the supply of a product is greater than the increase in its demand, _____.

Business

1 answer:

mestny [16]3 years ago

5 0

Answer: this means that there is fall in price of a goods on the demand market. This is because of price ceiling.

Explanation:

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Brad expects interest rates to increase and purchases a put option on Treasury bond futures with an exercise price of 97-00. The

ale4655 [162]

Answer: Net Gain $5,000

Return on Investment = 167%

Explanation:

Profits are made on Puts if the spot price (current price) is less than the exercise price. Which is why the equation is such,

Profit equation of put option = Max ( exercise price - spot price, 0) - Premium paid.

The formula shows that there is no profit if the spot price climbs higher than the Exercise price as the option will not be exercised. In other words of the spot price is higher than the Exercise price, the option will not be exercised hence $0 profit. If the Exercise price is higher though then it will be exercised and the gain will be the exercise price minus the spot price.

Using that formula his gain was,

= 97 - 89 - 3

= $5

Treasury bond futures contracts are usually sold at a minimum of 1,000 bonds so assuming Brad got 1 then his gain would be,

= 5 * 1,000

= $5,000

His return on investment would be,

= Net profit / Initial investment

Bear in mind that his Net Investment would be the premium times the number of bonds

= 1,000 * 3

= $3,000

Return on Investment = 5,000/3,000

Return on Investment = 167%

5 0

3 years ago

EXCESS CAPACITY Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the company’s fixed

Lubov Fominskaja [6]

Answer:

a. Calculation of level of sales

Level of sales = Sales / Operating capacity

= 7,000,000,000/90%

= $7,777,777,777.78

b. Calculation of Target fixed Assets/Sales ratio

Fixed assets sales ratio = Fixed assets / Level of sales

= 1,944,000,000/7,777,777,777.78

= 0.249942857

= 0.25

c. Calculation of Increase in Fixed assets

Increase in fixed assets = Fixed assets sales ratio * (Increase in sales - Level of sales)

= 0.249942857 * (7,000,000,000*1+15% - 7,777,777,777.78)

= 0.249942857 * (8,050,000,000 - 7,777,777,777.78)

= 0.249942857 * 272,222,222.222

= $68,040,000.

8 0

3 years ago

Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of

skad [1K]

Answer:

$11.2 per unit

Explanation:

The computation of the variable cost per unit is shown below:

= Variable direct materials cost per unit + Variable direct labor cost per unit + Variable factory overhead cost per unit + Variable selling and administrative cost per unit

= $4.34 per unit + $5.18 per unit + $0.98 per unit + $0.70 per unit

= $11.2 per unit

We simply added the entire variable cost per unit so that the accuracy per unit could be reached

3 0

3 years ago

Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in y

Airida [17]

Answer:

225,000 shares

Explanation:

A company's shares outstanding refers to the total number of shares investors currently own.

Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in year 2.

In year 3, Beck purchased 75,000 shares of its common stock and held it in Treasury.

At December 31, year 3, the number of shares of Beck's common stock were outstanding is

200,000 shares in year 1

100,000 shares in year 2

Total Common Stock = 300,000

less: Treasury Stock of 75,000

Outstanding Stock = 225,000 shares

5 0

3 years ago

In a __________ pricing tactic, sellers advertise low prices and then aggressively pressure customers to purchase higher-priced

Mrrafil [7]

Answer:

This is known as a "bait and switch" pricing tactic :)

3 0

2 years ago