Answer:
a. The initial remittance is the same as the initial margin requirement of $3,000.
b. The profit is;
= 100 ounces * ( 1,005 - 1,000)
= $500
Return is;
= Profit/ Margin
= 500/3,000
= 16.67%
c. The loss is;
= 100 * ( 1,000 - 998)
= -$200
d. If the futures price declines to $984, what must the speculator do?
Depends on if the maintenance requirement is still below the balance.
= 3,000 - 100 * (1,000 - 984)
= $1,400
This is below the maintenance margin of $1,500 and so the speculator will have to deposit an amount that will take it back to the original margin requirement.
= 3,000 - 1,400
= $1,600
Speculator should deposit $1,600.
e. = 3,000 - 100 (1,000 - 982)
= $1,200
Answer:
The correct answer to the following question is B) Selective advertising or Selective demand stimulation.
Explanation:
Selective advertising ( which is also know as selective demand stimulation ) is a type of approach which can be used to present the message that a producer or company wants to deliver through advertising. In this approach, message delivered by company tells its consumers about the benefits of its brand and how their brand is much better than other brands. Company's can use various strategies like benefit positioning ( where company tells about the benefits of their brand ) or competitive positioning ( where company tells how their brand is better than others ) to depict their selective demand.
Answer:
(a) $5,690
(b) $380
Explanation:
Given that,
current assets = $2,090
Net fixed assets = $9,830
Current liabilities = $1710
Long-term debt = $4520
Total assets:
= Current assets + Net fixed assets
= $2,090 + $9,830
= $11,920
Total Liabilities:
= Current Liabilities + Long-term Debt
= $1710 + $4520
= $6,230
(a) Total assets = Total liabilities + Stockholder's equity
$11,920 = $6,230 + Stockholder's equity
$11,920 - $6,230 = Stockholder's equity
$5,690 = Stockholder's equity
(b) Net working capital:
= Current assets - Current liabilities
= $2,090 - $1,710
= $380
Answer:
the selling price of the product is $63
Explanation:
The computation of the selling price of the product is as follows:
As we know that
The contribution margin ratio = Contribution margin ÷ Selling price
20% = $12.60 ÷ Selling price
So the selling price is
= $12.60 ÷ 20%
= $63
Hence, the selling price of the product is $63
This is the answer but the same is not provided in the given options
We simply applied the above formula so that the correct value could come
And, the same is to be considered
