Answer:
$
Sales (2,500,000 x$0.10) 250,000
Less: Material cost(2,500,000 x $0.03) 75,000
Annual lease rental <u>70,000</u>
Profit <u>105,000</u>
Explanation:
Profit equals annual sales minus material cost minus annual lease rental. Since the annual sales volume are 2,500,000 gloves at a price of $0.10 per pair, the total sales value will be $250,000. Material costs $0.03 per pair, thus, the total material cost will be $0.03 x 2500,000 pairs. Annual lease rental of $70,000 is treated as a fixed cost.
A.
Just having more workers does not necessarily make the labor force productive. However, economies of scales such as managerial economies of scales could allow for more efficient allocation of resources, technological advancement makes workers more productive as they operate machinery, and training reduces the chances of mistakes and raises their efficiency.
The investment activities section of the statement of cash flows includes increases and decreases in long-term assets.
Long-term assets are investment based activities which included equipment used in a business and the building thats built for a business to run in. If you were to sell your long-term assets and make a profit, this would also but included in the investment activities section of the state of cash flows.
Answer:
c. $8.63
Explanation:
Missing word <em>"The forward LIBOR rate is 7%. All rates are compounded semiannually. A. $8.88
, B. $9.12
, C. $8.63
, D. $9.02"</em>
Principal = $1000, FRA Rate = 9 % per annum, LIBOR after 2 years = 7 % per annum, Compounding Frequency: Semi-Annual, Risk-Free Rate = 6 % per annum
The FRA matures 2 years or 24 months from now. Further, the Interest Rate that the FRA hedges will create an interest expense only at the end of the LIBOR loan period which is an additional 6 months after the 24 month period.
Hence, Exchange of Interest Expense at the end of 30 Months = (FRA Rate - LIBOR) x Principal (calculated on a semi-annual basis)
= (0.045 - 0.035) * 1000
= $10
Current Value of FRA = Present Value of Interest Expense at the end of the 30 Months Period
= 10 / [1+(0.06/2)]^(30/6)
= $8.6261
= $8.63
Answer:
a) Informational
Explanation:
The company is using informational appeal in its advertisement to convince the buyers that they need the product and shows how it works. . This type of appeal informs customers of the features, quality and benefits of a product. The demonstration of how the blades work helps the potential customers to make a rational decision as it it portrays that the blades' function of the providing the closest shave is what they need.