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Elan Coil [88]
3 years ago
14

You have taken a short position in a futures contract on corn at $3.74 per bushel. Over the next 5 days (Day 1 to Day 5) the con

tract settled at 3.68, 3.71, 3.67, 3.64, and 3.61. Before you can reverse your position in the futures market you are notified on Day 5 to complete delivery. What will you receive on delivery per bushel and what is the net amount per bushel you receive in total
Business
1 answer:
eimsori [14]3 years ago
3 0

Answer:

Explanation:

In finance, short selling (also known as shorting or going short) is the practice of selling assets, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.

So in the given scenario the investor would be at lose of

Selling price = 3.74 per bushel

Purchase price = 3.61 per bushel

therefore lose of $ 0.13 per bushel you need to pay off.

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If the contribution margin is not sufficient to cover fixed expenses:.
Elan Coil [88]

If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

<h3>What is a Contribution Margin?</h3>

The contribution margin can be expressed in gross income terms.  After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.

The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.

This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.

Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

Learn more about contribution margin here:

brainly.com/question/24881206

7 0
2 years ago
Beginning inventory Merchandise $302,000 Finished goods $604,000 Cost of purchases 420,000 Cost of goods manufactured 760,000 En
trapecia [35]

Answer:

A. $520,000

B. $1,168,000

Explanation:

Computation to determine the cost of goods sold for each of these two companies for the year ended December 31, 2017.

a. UNIMART Partial income statement

For the year ended December 31,2017

COST OF GOODS SOLD

Beginning merchandise inventory $302,000

Cost of purchase $420,000

Goods available for sale $722,000

Less; Ending merchandise inventory ($202,000)

Cost of goods sold $520,000

b) PRECISION Manufacturing

Partial income statement

For the year ended December 31,2017

COST OF GOODS SOLD

Beginning finished goods inventory $604,000

Cost of manufactured $760,000

Goods available for sale $1,364,000

Less; Ending finished goods inventory ($196,000)

Cost of goods sold $1,168,000

Therefore the cost of goods sold for each of these two companies for the year ended December 31, 2017 will be:

Unimart $520,000

Precision $1,168,000

7 0
3 years ago
Explain the vertical integration options and directions for the following providers: (a) a major academic medical center such as
kvasek [131]

Answer:

(a)<u> Backward vertical integration</u> (b) <u>Forward vertical integration</u> (c) <u>Backward vertical integration</u>

Explanation:

(a) An academic medical center is an example of backward vertical integration. The specialist and faculties from the university will provide treatment to the patients. Such medical centers have tertiary service with several intermediaries.

(b) Here, there is no intermediary between patients and general surgery group. The general surgery group treat patients directly. So here there is a forward vertical integration system.

(c) A manufacturer of durable medical equipment will supply to retailers who in turn supply these to hospitals where the patients will receive service from these equipment. So, it is an example of backward vertical integration.

3 0
3 years ago
Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the
arsen [322]

Answer:

2nd January

Dr Machinery              $178,000

  Cr Cash                    $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery              $4,000

  Cr Cash                    $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).  

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.  

6 0
3 years ago
Which of the following is an example of a functional skill?
Verizon [17]

Answer:

The most basic of functional skills are those skills that we usually acquire in the first few years of life: walking, self-feeding, self-toileting, and making simple requests.

Explanation:

6 0
3 years ago
Read 2 more answers
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