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natulia [17]
2 years ago
15

Links Golf Course is planning for the coming golfing season. Investors would like to earn a​ 10% return on the​ company's $60,00

0,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be​ $32,000,000 for the season. About​ 600,000 rounds of golf are expected to be played each year. Variable costs are about​ $15 per round of golf. Links Golf Course is a​ price-taker and will not be able to charge more than its​ competitors, who charge​ $75 per round of golf. Compute the operating profit that will be earned.Select one:A. $6,000,000B. $46,800,000C. $87,800,000D. $5,800,000E. none of the above
Business
1 answer:
Y_Kistochka [10]2 years ago
6 0

Answer:

Option (E) is correct.

Explanation:

Revenue at the competitor price:

= Rounds of golf are expected to be played each year × Charge per round

= 600,000 × $75 per round

= $45,000,000

variable Cost:

= Rounds of golf are expected to be played each year × Variable cost per round

= (600,000 × $15)

= $9,000,000

Contribution Margin:

= Revenue at the competitor price - variable Cost

= $45,000,000  - $9,000,000

= $36,000,000

Less: Fixed Costs = 32,000,000

Operating profit:

= Contribution Margin - Fixed Costs

= $36,000,000 - $32,000,000

= $4,000,000

So, the operating profit is $4,000,000.

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____ is the process of designing a product for efficient production at the highest level of quality.group of answer choices
KatRina [158]

Design for Manufacturing or DFM is the process of designing a product for efficient production at the highest level of quality  .

<h3>Design for Manufacturing, or DFM, is what?</h3>

Design for Manufacturing (DFM) is the process of creating goods, parts, or components that are simple to manufacture with the aim of producing them more affordably. This is accomplished by streamlining, improving, and perfecting the product design. Sometimes DFM and the abbreviation DFMA (Design for Manufacturing and Assembly) are used interchangeably.

Even though questioning the initial design is an essential component of a full DFM, bringing stakeholders together early in the design process is easier if you're creating a new product. By copying an earlier design, errors in a design are all too frequently replicated. Examine each component of your design.

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6 0
1 year ago
Nanda is “sharing” the news that a co-worker is going through a divorce. The news get to the manager and as a result, someone wi
hoa [83]

Answer:

I would punish Nanda.

Explanation:

6 0
3 years ago
An investor believes that there will be a big jump in a stock price, but is uncertain as to the direction. Identify six differen
Korvikt [17]

Answer:

Consider the following explanation.

Explanation:

The six different strategies (spreads or combinations) the investor can follow:

1)short Butterfly spread: it’s a spread with selling one call option with the lowest strike price(XL),purchasing two call options with the medium strike price(XM) and  selling one call option with the highest strike price (XH) , XL<XM<XH. The strike price (XM) is generally chosen such that its equal to the stock price and options are of same maturity. The strategy shall generate the net income from the selling of calls when the stock price deviated from the strike price XM due to the high volatility. A high jump either way guarantees a net income.

2) The Straddle combination with long one put and long 1 call with the same strike price X and maturity. Its payoff depends on the deviation of the strike price if the big jump either way is expected then either the put or the call expires in the money so that the moneyness(payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call.

3)In the Strangle combination there is one long call with strike price (Xc) and one long put with strike price Xp,this combination is cheaper to generate due to purchase of OTM(out of the money) options. If the big jump either way is expected then either the put or the call expires in the money so that the moneyness (payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call. It’s easier to cover all the lesser premiums paid for the call and put and generate profits with a big move.

4) The Strip combination consists of 1 call+2 put with same exercise price and maturity. If the big jump either way is expected then either the two put or the call expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 puts is much more when the stock moves downwards as compared to when the stock moves upwards. Investor is sure of the uncertain directional big jump but thinks that the probability of downward move is greater than the upward move.

5) The Strap combination consists of 2 calls+1 put with same exercise price and maturity. If the big jump either way is expected then either the 1 put or the 2 calls expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 calls is much more when the stock moves upwards as compared to when the stock moves downwards. Investor is sure of the uncertain directional big jump but thinks that the probability of upward move is greater than the downward move.

6) Short Calendar spread: short shorter term call and at the same time short longer term call therefore the income is generated by the big move from the premiums of the calls and differences in the maturity.

3 0
3 years ago
Kraft has adapted its popular Oreo cookie to the unique tastes of consumers all around the world, whether it's mango-and-orange
zvonat [6]

Answer:

Product adaptation

Explanation:

Product adaptation is when an existing product is changed or modified to suit customers need in a foreign market . The aim is to satisfy customers want all around the world where the products are exported to.

There are various reasons why products may be adapted, one of which is changing the taste of a product to meet the desire of customers who are based in other countries or around the world. It may also involve either changing the brand, colour etc, just to meet customers demand all around the world.

Other reason why a product may be adapted is to comply with local laws where the products are exported to.

7 0
2 years ago
How many times will interest be added to the principal in 1 year if the interest is compounded quarterly? A. 6 B. 12 C. 4 D. 3
nadezda [96]

Answer:

How many times will interest be added to the principal in 1 year if the interest is compounded quarterly?  C. 4

Explanation:

Compounding means at the end of every term, the interest adds up to the Principal Amount. Compounded quarterly means, you do it for every three months. So after every three months, your interest will be added to principal.

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3 years ago
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