Answer: The correct option is "c.exercising an in-the-money put option".
Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.
because he would be paying the debt with the participation in the equity of the company.
The unit cost per service is calculated by dividing the total operating cost of services by the number of service units.
In the given problem, the operating expenses are $9,000 which shall be considered the cost of services provided. And the number of the service unit is given 46 units.
Hence, unit cost per service shall be $9,000/46 = <u>$195.65</u>
Note: We have rounded off the final answer to the nearest cent or two decimal places.
Answer:
False
Explanation:
Labour Markets are at equilibrium where : Market Demand for labour (by firms) = Market Supply of Labour (by labourers), & the respective curves intersect.
Labour Demand curve is downward sloping, as firms' demand is inversely related to price i.e wages. Labour supply curve is upward sloping, as labourers' supply is directly to price (wages).
If wage is higher than equilibrium wage : labour supply being directly related to wage, will be more. And, labour demand being inversely related to wage, will be less. It would lead to excess supply of labour in comparison to its demand. This would imply many people are able & willing to work at the prevailing wage rate , not getting jobs - i.e unemployment.
Wage higher than equilibrium wage rate will have Unemployment impact, irrespective of the cause (minimum-wage laws or other) of wage rise.
Answer:
Over-applied overheads= $54,800.00
Explanation:
<em>Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.</em>
<em>As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred</em>.
Overhead absorption rate = budgeted Overhead/Budgeted labour hours
= $360,000/30,000 direct labour hour
<em>= $12 per hour</em>
<em>Absorbed overhead= OAR× actual labour hours</em>
= 12× 36,000
= 432,000.00
<em>Over absorbed(applied) overhea</em>d = is the difference between actual overhead and absorbed
$432,000.00 - $377,200
Over-applied overheads= $54,800.00
Here are the items that would describe <span>the results of scarcity:
-</span><span>There are not enough goods and services to meet everyone's wants.
-</span><span>Using resources today means having fewer of them in the future.
Scarcity means being in short supply or shortage. Hope this answers your question. </span>