Answer:
It is more profitable to add the vitamin and sell the product for $5. Income will increase by $260
Explanation:
Giving the following information:
The number of units= 1,000 packages
Actual:
Selling price= $4.00 per pack.
Variable cost is $1.50 per unit
Fixed costs are $1,700 per month.
New option:
Selling price= $5
Variable cost= $1.9
Fixed costs= $2,040
We need to calculate the net income of both options, and choose the more profitable one:
Actual:
Net income= 1,000*(4-1.5) - 1,700= $800
New:
Net income= 1,000*(5 - 1.9)- 2,040= $1,060
It is more profitable to add the vitamin and sell the product for $5.
Answer: $20,000
Explanation:
To calculate Citicorp's profit or loss we can use the following formula,
The Citigroup's profit is computed as shown below:
= Exercise Price - Spot Price + Premium received
= $ 0.59 - $ 0.60+ $ 0.02
= $ 0.01 per euro is Citicorp's profit.
Total profit will therefore be:
= $ 0.01 x 2,000,000
= $ 20,000
$20,000 is Citicorp's profit on the call option.
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Answer:
Policy owner
Beneficiary
Face amount
Insured
Explanation:
John is both the “Policy owner” and the “Beneficiary” who will receive the “ Face amount” upon the death of Betty, the “Insured”.
The term policy owner is used to refer to a person who buys and pays the premium. At the same time, a beneficiary is a person who receives the face amount that was on the name of the insured (Betty).
It is given that John has bought the policy and paying the premium so he is the owner. Moreover, he is the beneficiary because he is getting the insurance amount after the death of betty who is insured.
The bottom one because equal is balanced
