Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.
This is further explained below.
<h3>What are interest rates?</h3>
Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.
"lower interest rates encourage people to spend money on house upgrades"
In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.
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Answer:
Break-even point in units= 348
Explanation:
Giving the following information:
The fixed cost for the production will be $24,000. The variable cost will be $31 per pair of shoes. The shoes will sell for $100 for each pair.
<u>To calculate the break-even point in units, we need to use the following formula:</u>
<u></u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 24,000 / (100 - 31)
Break-even point in units= 347.82 = 348
Macroeconomics is the branch of economics which deals with largescale or general economic factors like interest rates and national productivity. The correct answer is Macroeconomics.
<h3><u>What does Macroeconomics deal with?</u></h3>
- Macroeconomics examines the functioning, structure, and behavior of the entire economy (like people, households, industries, etc.) in contrast to microeconomics, which focuses primarily on the decisions made by individual economic actors.
- It analyzes the economy-wide phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP), and changes in unemployment. It also analyzes the causes, stimulation and driving forces of these phenomena and how the national performance can be improved.
- The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.
Therefore, the national performance indicators like inflation, unemployment, and federal government expenditures and resource utilization are analyzed are studied under Macroeconomics.
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The cost of foreign goods rises briefly,then falls
Answer:
<u>FIFO</u>
Ending inventory: = 6745
Cost of goods sold: = 5120
<u>AVERAGE</u>
Ending inventory: 6215
Cost of goods sold: = 5650
Explanation:
The FIFO (First input, first output) method allows you to make an inventory valuation, taking into account that the first items that enter the stock are the first ones that come out.
In the method of valuation of weighted average cost inventory, a weighted average is used to determine the cost of goods sold and the value of the inventory. To do this, the cost of the goods available for sale is divided by the number of units available for sale.
<em>(See the attached form to see the calculations)</em>
