On December 31, 2022, the book value of the equipment comes out to be $36,840 with monthly depreciation of $620.
Option D is the correct answer.
<h3>What is meant by depreciation?</h3>
Depreciation is a method that applies to tangible fixed assets where the fall in the value of an asset has been recorded.
Given values:
The purchase cost of equipment: $44,280
Monthly depreciation: $620
<u>Step-1</u> Computation of annual depreciation charges:
<u>Step-2</u> Computation of book value of the equipment at the year-end:
Therefore, when the company purchases equipment at $44,280 with annual depreciation is $7,440, then the equipment's book value comes out to be $36,840 at the year-end.
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Answer:
The firm should increase output and reduce price
Explanation:
For a monopolist, there can be one of the following three scenarios at a time point in time:
Scenario one, MR = MC: For a monopolist, profit is maximized at the point where marginal revenue (MR) is equal to to marginal cost (MC), i.e. where MR = MC.
Scenario two, MR < MC: But when the MR < MC, it indicates that the monopolist is currently producing a higher quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to reduce output until MR = MC.
Scenario three , MR > MC: But when the MR > MC, it indicates that the monopolist is currently producing a lower quantity of output and it is not maximizing profit. In order to maximize profit, the monopolist has to increase output until MR = MC. Also, the monopolist has to reduce price in order to sell the increased quantity of output.
From the question, the monopolist falls into scenerio three as MR > MC, i.e. $45 > $35. Therefore, the monopolist should increase output until MR = MC and reduce price in order to maximize profit.
Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
Gamma Manufacturing employs some of the top professionals in its field, and because of their skills and experience, Gamma is highly efficient and outperforms its competitors. Gamma Manufacturing has a(n)<u> Competitive Advantage</u> over its competition.
A competitive advantage distinguishes a company from its competitors. It contributes to more significant prices, more customers, and brand loyalty. Creating such a competitive advantage is one of the most important goals of any firm. It is critical for corporate success in today's environment. Companies will struggle to exist if they do not have it. A competitive advantage enables a company to outperform its competitors. It refers to variables that allow a corporation to produce better services or items. "Competitive advantage" is a concept that is commonly used in business, but it can also apply to countries, organisations, and individuals.
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