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Arte-miy333 [17]

3 years ago

10

Assume you short sell 100 shares of IBM common stock at $125 per share. If the initial margin is 70%, what is the amount that yo

u put in as cash buffer?a) $3750b) $12500c) $5000d) $8750

1 answer:

zhuklara [117]3 years ago

3 0

Answer: d) $8750

Explanation:

The Cash buffer is also the margin of the total value of the stock.

= Initial margin * Investment value

= 70% * (125 * 100)

= 70% * 12,500

= $8,750

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Aloha Bags, Inc. produces student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $2

netineya [11]

Solution :

a). At the break even units, the total contribution margin = fixed expenses

We know that : (Selling price - variable cost) x units sold = fixed expenses

i.e. (20-14)x = 225,000

6x = 225,000

x = 37,500

Therefore, the number of units sold, x = 37,500

So, the break even analysis = 37,500 x 20

= 750,000

b). $\text{Contribution margin ratio} = \frac{\text{(Sales - variable cost) }}{\text{sales}}$

$=\frac{20-14}{20}$

= 30%

The Breakeven sales = $\frac{\text{fixed cost}}{\text{Contribution margin ratio}}$

$=\frac{225,000}{30\%}$

= 750,000

c). $\text{Margin of Safety ratio } = \frac{\text{(Sales - Breakeven sales) }}{\text{sales}}$

$=\frac{1,2000,000-750,000}{1,200,000}$

= 37.5%

d). Units needed :

$(20-14)x - 225,000 = 150,000$

$6x - 225,000 = 150,000$

$6x = 375000$

$x=62,500$ units

Therefore, the sales required = 62,500 x 20

= 125,000

4 0

3 years ago

Researchers now recognize three major types of behavior that constitute performance at work. Which of the following are these th

valina [46]

Answer:

Answer 1: task performance, citizenship, counterproductivity

Answer 2: Citizenship.

Explanation:

Here is the complete question: Question 1: Researchers now recognize three major types of behavior that constitute performance at work. Which of the following are these three major types of behavior?

a. task performance, productivity, tenure.

b. productivity, efficiency, absenteeism.

c. task performance, citizenship, counterproductivity

e. Citizenship, counterproductivity, personality.

f. leadership, knowledge, efficiency.

Question 2: Treating co-workers with respect, making constructive suggestions, and saying positive things about the workplace are a part of the ________ behavior that constitutes performance at work.

Citizenship refer to actions that contribute to the psychological environment of the organization, such as helping others when it is not required. It benefit the team and organization in better functioning and effieciency. These behavior are generally recognized by boss and business leaders.

3 0

3 years ago

Boris tells a colleague all about a major prospect Boris plans to call on in the next few days and asks the colleague to pretend

Fittoniya [83]

Answer:

b. role playing is the correct answer.

Explanation:

This situation Boris and his colleague are engaged in role-playing.

Role-playing means imitating the behavior and role of someone else.

It takes place among two or more than two people that act the roles to explore the particular scenario.

In the business, role-playing is used to find out the problems from various perspectives and to improve communication among the team members.

The role-playing objective is to improve and develop the skills that are necessary for a particular position.

6 0

3 years ago

During 2021, its first year of operations, American Laminating Corporation reported an operating loss of $120 million for financ

AleksAgata [21]

Answer: e. Income tax expense in 2019 is zero.

Explanation:

There will still be an income tax in 2019 so the above statement is incorrect.

American applies net operating loss carryforward up to 80% of taxable income which means that their taxable income is:

= 40,000,000 * ( 1 - 80%)

= $8,000,000

Income tax expense for 2019:

= 25% * 8,000,000

= $2,000,000

7 0

3 years ago

"Paid as agreed" on your credit report is:

frutty [35]

Answer:

B. Good. It means your loan is paid off.

Explanation:

When the account says "Pay as agreed," it means all the payments have been made in full and within the time agreed with the creditors. On the credit report, the ''pay as agreed'' is a status that shows all payments were made as per the terms of the creditor.

The "pay as agreed'' status shows the customer as a low-risk borrower. A lender will be willing to advance credit to such customers.

5 0

3 years ago