This type of demand is classified as autonomous demand. Autonomous demand does not depend on other products but is due to increase in consumer usage by natural desire. This type of demand is relative to the needs of the consumer.
Answer:
$40
Explanation:
Overhead per machine hour = Overhead ÷ 250,000 machine hours
= $750,000 ÷ 250,000
= $3
Cost of each unit:
= Direct material + Direct labor + Overhead
= $14 + $20 + (machine hours per unit × Overhead per machine hour)
= $14 + $20 + (2 × $3)
= $40
Therefore, the cost of each unit produced is $40.
Answer:
The correct order is option B.
Explanation:
As the order is in which the items are in the process of the subsidiary is given as by option B.
Option A is not true as the step of receiving report is not at the start of the process.
Option C is not true, because all the steps are not included.
Option D is not true as well because all the steps are not included.
Answer:
Mel
If Mel is risk-neutral, then in the absence of trip insurance, the most she will be willing to pay for the cruise is _______.
c. $1,220
Explanation:
a) Data and Calculations:
Mel's value of a cruise in nice weather = $2,000
Mel's value of a cruise in bad weather = $50
Probability of nice weather = 60%
Probability of bad weather = 40%
Expected value:
Weather Outcome Probability Expected Value
Nice weather $2,000 60% $1,200
Bad weather $50 40% $20
Total expected value of a cruise $1,220
Answer:
The answer is <u>"a. 8.13%".</u>
Explanation:
Given that;
d0 = $1.75
p0 = $40.00
g = 3.6% = 0.036
By using the formula;
Price of the stock = (Dividend this year)(1+g) ÷ (r - g)
By putting the values;
40 = (1.75)(1+0.036) ÷ (r - 0.036)
r - 0.036 = (1.75)(1.036) ÷ 40
r - 0.036 = 1.813 ÷ 40
r - 0.036 = 0.045325
r = 0.045325 + 0.036
r = 0.081325 = 0.081325 x 100
<u>r = 8.13%</u>
