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kakasveta [241]
3 years ago
11

You write one JNJ February 70 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this positio

n?
Business
1 answer:
Law Incorporation [45]3 years ago
4 0

Answer:

$65

Explanation:

The calculation of the break even price for this position is given elow:

Break even price is

= Strike price - premium

= $70 - $5

= $65

The stock goes increase i.e. upwards to $65 so the amount that lose is only $5 but it declines than the stock would be $0

Therefore, the break even price of this position is $65

So, by using the above formula we can get the break even price and the same is to be considered

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Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the poo
allochka39001 [22]

Answer:

Results are below.

Explanation:

<u>To calculate the activities rates, we need to use the following formula on each pool:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Pool 1= 20,000/10,000= $2 per direct labor dollar

Pool 2= 15,000/50= $300 per setup

Pool 3= 10,000/200= $50 per hour

<u>Now, we can allocate costs to each product:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product A:

Pool 1= 2*4,000= 8,000

Pool 2= 300*20= 6,000

Pool 3= 50 *50= 2,500

Total allocated costs= $16,500

Product B:

Pool 1= 2*6,000= 12,000

Pool 2= 300*30= 9,000

Pool 3= 50 *150= 7,500

Total allocated costs= $28,500

8 0
3 years ago
A buyer agrees to purchase real property by making monthly payments to the seller and then receiving a deed at a later point in
slamgirl [31]

A buyer agrees to purchase real property by making monthly payments to the seller and then receiving a deed at a later point in time. such an agreement is known as a/an purchase-money mortgage.

What is purchase-money mortgage?

A purchase-money mortgage is a mortgage that the seller of home issues to the borrower as part of the sale of the property. This is typically done in circumstances where the buyer is unable to qualify for a mortgage through conventional banking channels. It is also known as seller financing or owner financing. In circumstances when the buyer is taking over, the seller's mortgage, and seller financing makes up the difference between the mortgage's outstanding balance and the property's sales price, a purchase-money mortgage may be employed.

What is one of the disadvantages of the purchase money mortgage?

One drawback is that you are still, and will continue to be, the home's legal owner. In the event that those buyers turn out to be dishonest, you can be left with damaged properties. Another drawback is that it could be challenging to evict or foreclose on a buyer who defaults on a loan.

Learn more about purchase-money mortgage: brainly.com/question/20711780

#SPJ4

7 0
1 year ago
A company produces a single product. Variable production costs are $13.20 per unit and variable selling and administrative expen
Alex Ar [27]

Answer:

the ending inventory is $13,200

Explanation:

The computation of the dollar value of the ending inventory under variable costing is shown below:

= Variable production cost per unit × difference in units

= $13.20 per unit × (5,200 units - 4,200 units)

= $13.20 per unit × 1,000 units

= $13,200

hence, the ending inventory is $13,200

5 0
2 years ago
Santiago Delgado owns a copier store. He leases two copy machines for which he pays $20 each per day. He cannot increase the num
m_a_m_a [10]

Economic theory and the data in the table show that the average total cost curve and the marginal cost curve are related in that the MC curve passes through the minimum point of the ATC curve.

<h3>What is the relationship between the MC and ATC curves?</h3><h3 />

The data given by the table (which is accurately filled up) shows that the MC curve will intersect the ATC curve at its lowest point.

We see this from the fact that before the lowest ATC of 0.107, the marginal cost was less than the ATC. After the lowest ATC however, the marginal cost becomes higher than the ATC.

This shows that the MC curve intersected the ATC at its lowest point of 0.107 and then kept rising above it.

Find out more on the MC curve at brainly.com/question/9335427.

4 0
2 years ago
For every minute you are angry you lose 60 seconds of happiness meaning
Mariulka [41]
I think it means whenever your angry you lose every single minute
6 0
3 years ago
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