Answer:
The production range between 1120,000 and 150,000 is called Relevant range
correct option is c) relevant range
Explanation:
given data
normally produces = 120,000 to 150,000 units
to find out
The production range between 1120,000 and 150,000 is called
solution
The production range between 1120,000 and 150,000 is called Relevant range because there are 2 point
- if Craft, Inc. need to reduce fixed expenses then production volume is reduce less than 120000 unit
- if Craft, Inc. need to increase fixed expenses than production volume is increases more than 150000 unit
and if expected fixed expenses will not change than the production volume is 120000 units to 150000 units
so that production range between 1120,000 and 150,000 is called Relevant range
correct option is c) relevant range
Answer:
Payoff = $2 per share.
Explanation:
In a put option, the long (the party that buy the put) will have gain on the option when the underlying asset price is lower than the excercise price of that asset <em>(imagine the advantage that you can sell a chicken at $12 when it market price of is is only 10)</em>.
Because the stock price is $91, lower than exercise price of 93, so the company should exercise the put. Total payoff per share is 93 - 91 = $2.
<em>Note: We dont include premium to buy the put here because the question asking about payoff. We on include premium in calculations when the question is about profit.</em>
Answer:
The correct answer is letter "B": Identifying alternative solutions.
Explanation:
By identifying alternative solutions someone is trying to discard the solution of a problem over another because one of them is helpful but carries a problematic situation. In this process, it is important to identify in what way an objective can be reached without implying affecting other areas or people involved.
Answer:
Price elasticities of demand and supply
Explanation:
Tax is a compulsory amount levied on goods and services by the government or an agency of the government.
taxes increases the prices of goods and services
Deadweight loss of tax refers to a reduction in quantity demanded and supplied as a result of tax.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.
If demand or supply is elastic, the deadweight loss of tax is higher. If demand or supply is inelastic, the deadweight loss of tax would be lower.
Answer:
First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.
= Annuity * Present value interest factor of annuity due, 5 years, 7%.
= 37,400 * 4.3872
= $164,081
Date Account Details Debit Credit
Dec. 31, 2019 Lease Receivable $164,081
Cost of goods sold $104,800
Sales $164,081
Inventory $104,800
Date Account Details Debit Credit
Dec. 31, 2019 Cash $37,400
Lease Receivable $37,400
