Answer:
Club membership fee of $60 would maximize profit.
If the club charges tow part pricing the maximum revenue can be $3500.
Explanation:
Joe has entered into a monopoly because he is owner of single golf course in the Northlands.
Demand function for Joe's golf course is:
P = 160 - 2q
P = $20 , q = 50
160 - 2 (50) = 60
Consumer surplus = 0.5 * equilibrium quantity
Consumer Surplus for Joe is ; 0.5 * 50 (160 - 20) = $3500
If MR = MC then demand function will become :
160 - 4q
If q = 25 then
160 - 4 * 25 = 60
Answer:
The correct option is C,the director is not subject to the restrictions on short-swing profits.
Explanation:
The short-swing profit rules apply to company's insiders such the directors who have access to sensitive share price information of the company.
The rules mandated that such insiders return to the company any profit made in dealing in the shares of the company if both purchase and sale of shares occur within six months.
However, the director in question is not subject to short-swing profits since the profits of $1,500 made on January 15($35-$30) *300) was cancelled out by the loss of -$1,500 made on February 3 ($20-$25)*300).
Answer:
b. determining costs of products and services
d. comparing actual to planned results
Explanation:
The purposes of the managerial accounting are to provide useful information to helps in reviewing past activities and for determining the costs of goods and services. Its provides information to compare the actual results to planned results. Also, it determines the costs for a product pricing, the profitability analysis and the helps in making decision whether to make or buy a product.
Answer:
a.) The proportional up movement , u, for the currency can be calculated using the following formula:
u = eStd Dev * Square root of t
u = e0.06*square root of 0.25
u = 1.0305
b.) Probability of up movement, p , = (a - d) / (u - d)
where a = ert where r = 0.025, t = 0.25
a = e0.025*0.25 = 1.0063
d = 1 / u = 1 / 1.3050 = 0.7663
p = (1.0063-0.7663) / (1.3050-0.7663)
p = 0.46
1-p = 1-0.46 = 0.54
c) Price of an American Call Option on the currency : we use binomial tree for that , as follows: The amounts below line indicate the option price and figures above line indicate the underlying asset price which is 0.55555