Luxere Hotels International, an American company, sells the rights to other hospitality companies globally to open hotels with t
1 answer:
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Answer:
BEP units: 42,017
BEP dollars: 2,100,850
unit cost at 100,000 units produced: 22.40 dollars
operating profit : 1,656,000
Explanation:
50 - 2.4 = 47.6 contirbution margin per unit
2,000,000/47.6 = 42.016,80 BEP units
BEP units x sales price = BEP dollars
42,017 x 50 = 2,100,850
(B)
fixed cosy/ units produced = fixed cost per unit
2,000,000/ 100,000 = 20 fixed cost per unit
fixed cost + variable cost = total cost
20 + 2.40 = 22.4
(C)
There are 40% units sold at the preferred customer at cost
So we sale at gain only 60% of the units:
100,000 units x 60% x 50 = 3,000,000
100,000 units x 40% x 22.40 = 896,000
Total revenue 3,896,000
Cost: 100,000 x 22.40 <u> (2,240,000) </u>
operating profit 1,656,000
Answer:
$98.02
Explanation:
Data provided in the question:
Value of contract = $1,330
Maximum value = $86
Minimum value = $65
Exercise price = $78
Risk-free rate = 3%
Now,
Current value of stock =
also,
a standard contract has 100 shares
thus,
Call price = Value of contract ÷ 100 shares
or
Call price = $1,330 ÷ 100 = $13.30
Thus,
Current value of stock =
or
Current value of stock = ( 2.625 × $13.30 ) + $63.1068
= $98.0193 ≈ $98.02