The most important determinant of consumption and saving is the

Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 130,000 Dire

alex41 [277]

Answer:

$235,600

Explanation:

Variable costs refer to corporate expenses that change in proportion with the output of a production process. These costs may either increase or decrease based on a company's production volume; they rise as production increases and fall as production decreases. In our case, they include direct material cost, direct labor cost, and packaging cost.

Closet Link's total variable costs

= Direct material cost + Direct labor cost + packaging cost

= $86,000 + $130,000 + $19,600

= $235,600

7 0

3 years ago

Assume a speculator anticipates that the spot rate of the franc in three months will be lower than today’s three-month forward r

Oksi-84 [34.3K]

Answer:

Assume a speculator anticipates that the spot rate of the franc in three months will be lower than today’s three-month forward rate of the franc, .

a. The speculator can use $1 million to speculate in the forward market by purchasing a forward contract for 2,000,000 francs to be paid out in three months. This helps the speculator avoid losing money as the exchange rate decreases in period of three months.

b. Suppose the franc’s spot rate in three months is $0.40:

This means that the dollar is expected to appreciate in three months because its current rate is. It would take fewer dollars to purchase one franc in three months. The demand for dollars would increase because speculators looking to make a profit would hold as many dollars as possible while waiting for the currency to appreciate, then sell it for more than they purchased it for.

Hence, the speculator could make a profit of $0.10 on each franc.

Suppose the franc’s spot rate in three months is $0.60:

This means that the dollar is expected to depreciate in three months because its current rate is. It would take more dollars to purchase one franc in three months. The demand for dollars would decrease because speculators are expecting the currency’s value to fall in the coming three months.

The speculator would suffer a loss of $0.10 on each franc.

Suppose the franc’s spot rate in three months is $0.50:

This means that the value of the dollar is expected stay the same because its current rate is. It would take the same amount of dollars to purchase one franc in three months. The demand for dollars would remain constant.

The speculator would earn no profit no loss when the Franc’s spot rate in 3 months is $0.50.

Explanation:

7 0

3 years ago

Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then red

ololo11 [35]

Answer:

The price of the stock today or the price at which the stock should sell today is $61.30

Explanation:

The price of the stock today can be calculated using the Dividend Discount Model approach which values a stock based on the present value of the expected future dividends from the stock. The price of this stock will be,

P0 = 3.15 * (1+0.2) / (1+0.12) + 3.15 * (1+0.2) * (1+0.15) / (1+0.12)^2 +

3.15 * (1+0.2) * (1+0.15) * (1+0.1) / (1+0.12)^3 +

[(3.15 * (1+0.2) * (1+0.15) * (1+0.1) * (1+0.05) / (0.12 - 0.05)) / (1+0.12)^3]

P0 = $61.296 rounded off to $61.30

5 0

3 years ago

Industries that are viewed as specialty (instead of a commodity) have a high level of rivalry?

nikdorinn [45]

Answer:

Specialty goods are the products which require high efforts in purchasing because their cost is certainly high, consumers cant take a risk of buying them frequently, like sporting cars, high end cameras, luxury high end clothing etc. There are many industries in specialty goods in which you can see intense level of rivalry. For example, in sporting cars, you have multiple brands which have very severe kind of rivalry like Jaguar and BMW - Lexus and Lotus, they not compete in cars but they compete in their advertisements, evenest as well.

Whereas, when you consider, photographic camera industry, you will also find intense kind of rivalry between Canon and Sony, Leica and Olympus. Here they not only face direct competition from other camera brands, but they also have to face competition from the cell phone industry, which also provide high end cameras in their cell phones like iPhone, Samsung and Oppo etc.

4 0

3 years ago

George owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has finished a

Alik [6]

Answer:

how to allocate resources among his four stores.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

The four factors of production are;

I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.

II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.

IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

In this scenario, George owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will most likely involve determining how to allocate resources among his four stores.

5 0

3 years ago