Answer:
$3
Explanation:
Producer surplus is the difference between the minimum acceptable price a producer is willing to receive for his product and the price he sells the product.
Producer surplus = $18 - $15 = $3
I hope my answer helps you
Answer:
Yield with 6-day maturity is 7.70%
Yield with 18-day maturity is 2.57%
Explanation:
The formula for yield on repurchase is given as:
y = ( PAR – P ) / P x (360 / t )
P=Purchase price
PAR=Repurchase price
t= number of days of the transaction
In first scenario,PAR is $39 million,P is $38.95 million and t=6
y=($39000000-38950000)/38950000*(360/6)
y=7.70%
In the second scenario,details remained the same except for t that is 18
y=($39000000-38950000)/38950000*(360/18)
y=2.57%
This implies the longer the maturity the lesser the yield since yield is computed on daily basis.
Answer:
Public disclosure test
Explanation:
The public disclosure test refers to the fact that companies have to care about what the public thinks about them. Before people used to say that the public disclosure test was like having your life broadcasted by television; Are we acting properly? What would happen if our actions were made public?
Nowadays the public disclosure test is much more common because everyone has and uses a smartphone. Everything is public now, a video showing a truck illegal disposing hazardous waste material would go viral in minutes and the company's reputation would be destroyed.
Answer:
A) The purchasing manager was able to negotiate a lower purchase price for raw materials.
Explanation:
Direct Material Price Variance = (Standard Price - Actual Price) Actual Quantity
This clearly shows that the variance can be positive when actual price is less than standard, in case actual price is more than standard even if the quantity is more variance will be unfavorable, therefore out of all the options provided correct option is
A) The purchasing manager was able to negotiate a lower purchase price for raw materials.