Answer:
$ 290,000
Explanation:
$ 120,000 Land cost
<u>Expenses</u>
$ 6,000 Subdividing
$ 36,000 Roads and Utilities
$ <u> 2,000</u> Taxes
$ 44,000 Total
<u>Interest</u>
$ 10,000 2018
$ <u>6,000</u> 2019
$ 16.000 Total
<u>Cost of Each Lot</u>
$ 120,000 Land cost
$ 44,000 Total Expenses
$ <u> 16,000</u> Interest *
$ 180,000 Total Cost
$ 6,000 Each ( $ 180,000 / 30 units ) *
<u>Quantity sold: 30 </u>
$ 6,000 Cost per unit
<u>Sales</u>
10 x $ 35,000 = $ 350,000
<u>Income Statement</u>
Sales $ 350,000
Cost $<u> (60,000)
</u> ( = $ 6,000 x 10 units ) *
Gain $ 290,000 *
<em>* Includes financing costs</em>
Answer:
Chester Company
Explanation:
Niche Cost Leader Strategy is to set the price for the products as lower than all the competitor's products and still be in profit. Thus by having set the lower prices than competitor's products in the market and achieving profit for the organization.
Chester Company is the strong competitor for the Niche Cost Leader Strategy company based on the given information, and the data as explained below.
- There is very low change in the stock market price ($0.45) and very low variation in closing stock price for the Chester Company. This indicates that the company has stable market stock price.
- Chester has lowest margins (35.8%) and lowest profits $3,144,115, as compared to other companies where as sales is high ($158,062,285), which is close to other companies of high sale value (Andrew - $211,593,184)
- Profit of Chester is lowest as compared to other companies, though sale is good. This indicates that the product price is lower than others. Thus it is strong competitor for niche cost leader Strategy Company.
- Production for the Chester Company is very high against the capacity of the company.
Answer: C. inform the company that this is a possible market manipulation under the Securities Exchange Act of 1934
Explanation:
The Securities Exchange Act of 1934 is meant to govern the actions of issuers and their affiliates engaging in trade in the open market. One reason for this is to prevent stock price manipulation.
SEC Act Rule 10b-18 might rule this transaction as a manipulative activity because it goes against the section of it that states that securities cannot be traded within 10 minutes of the stock market closing if that stock is an actively traded one. If it is not then the trade should not be executed within 30 minutes of market close.
The client should therefore be informed that by placing an order 5 minutes before close they could run afoul of this Act because buying such huge amounts at such a time could influence the price upwards for when the market reopens.
Answer:
A) 29%
Explanation:
W= (.14-.05)(.39^2)-(.21-.05)(.20)(.39)(.4)
(.14-.05)(.39^2)+(.21-.05)(.20^2) - (.14-.05+.21-.05)(.20)(.39)(.4)
B = 71% A =1-0.71= 29%
σ2rp = (.292)(.392) + (.712)(.202) + 2(.29)(.71)(.39)(.20).4
σ2rp = .045804
σrp = 21.4%
