Marketing is developing, promoting, and distributing products that satisfy

We also discussed that the spread (difference) between two futures prices for a storable commodity should be given by the cost o

otez555 [7]

Answer:

Market Principal notes that there should be no arbitration in the efficient market unless there is some arbitration so an efficient market system can quickly neutralize the situation.

The futures market for May, in the example above, is trading at $3.82 while the spot price is $3.45. The spot price month is listed but carriage costs and transportation are given as $0.20 and $0.03 per month.

This gives us a total price of $3.68 and this means the futures market is priced at a premium of $0.14.

3.82-= 0.14 (3.45 + 0.20 + 0.03)

This is not normal, of course, and traders will start shortening futures prices when going on the spot contracts for long. This would drive down the price of the futures while increasing the spot price, which should stabilize at $3.75.

Nevertheless, it is necessary to remember that in such equation there is also a borrowing fee which must also be taken into account. If the interest rate is 6 percent a year so it also takes into account a monthly finance fee of 0.5 percent of the contract value.

4 0

4 years ago

Calculating the Direct Materials Price Variance and the Direct Materials Usage Variance Guillermo's Oil and Lube Company is a se

galben [10]

Answer:

Results are below.

Explanation:

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (5.05 - 5.1)*6,020

Direct material price variance= $301 unfavorable

To calculate the direct material quantity variance, we need to use the following formula:

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (6,076 - 6,020)*5.05

Direct material quantity variance= $282.8 favorable

Standard quantity= 980*6.2= 6,076

Finally, the total direct material variance:

Total direct material variance= Direct material quantity variance - Direct material price variance

Total direct material variance= 282.8 - 301

Total direct material variance= $18.2 unfavorable

7 0

3 years ago

How much money did the betty white challenge raise.

jeka94

Answer: On Monday, Jan. 17, which would have been White’s 100th birthday, fans honored her legacy by donating $5 each to animal rights groups for what has been dubbed the #BettyWhiteChallenge. The challenge was a massive success, with hundreds of thousands of dollars raised for shelters, zoos, and animal rights organizations across the country.

Explanation: Hope this helps :)

8 0

3 years ago

Read 2 more answers

Weston Inc. wants to outsource its customer service operations. The top managers of the company are preparing a plan exclusively

morpeh [17]

Answer:

Single use plan

Explanation:

A single use plan is employed in tackling a particular organisational situation. This plan is only used once, because it is used to solve a specific situation and then discarded when the situation has been tackled.

A single use plan is utilized in situations that is unlikely to be repeated in the nearest future since the main purpose of the plan is to solve a particular problem.

The single use plan can be very precise in handling a particular situation.

5 0

4 years ago

A motel had the following business on a particular week. Number Occupied Type of room Sun Mon Tues Wed Thu Fri Sat Rate per nigh

Zina [86]

Answer:

Total profit for week = $57360

Explanation:

To calculate the profit for one-week period, we first need to calculate the revenue for one week period based on the given occupancy.

We will first calculate the revenue for every day and add it to calculate the revenue for the week.

Sunday = 60 * 80 + 90 * 64 + 50 * 48 => $12960

Monday = 60 * 80 + 90 * 64 + 50 * 48 => $12960

Tuesday = 60 * 80 + 90 * 64 + 50 * 48 => $12960

Wednesday = 60 * 80 + 90 * 64 + 50 * 48 => $12960

Thursday = 60 * 80 + 90 * 64 + 50 * 48 => $12960

Friday = 50 * 48 + 130 * 56 => $9680

Saturday = 50 * 48 + 130 * 56 => $9680

Total revenue for one week = 12960 * 5 + 9680 * 2 => $84160

To calculate the profit, we will first calculate the total cost.

Total cost = 20000 + (5 * 200 * 5 + 5 * 180 * 2)

Total cost = $26800

Total profit for week = 84160 - 26800

Total profit for week = $57360

5 0

3 years ago