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Iteru [2.4K]
3 years ago
6

Heating degree-day and cooling degree-day futures contracts make payments based on whether the temperature is abnormally hot or

cold. Explain why the following businesses might be interested in such a contract: Problems 21 a. Soft-drink manufacturers. b. Ski-resort operators. c. Electric utilities. d. Amusement park operators. 1.2 Suppose the businesses in the previous problem
Business
1 answer:
DochEvi [55]3 years ago
6 0

Answer:

a. Soft-drink manufacturers.

  • Soft drink manufacturers generally sell more during warm days, so they will be interested in reducing risks (hedging) against cold days.

b. Ski-resort operators.

  • Ski-resort operators sell more during cold days (winter), but their sales are negatively affected by both abnormal warm weather or extremely harsh cold weather, so they will be interested in reducing risks (hedging) against abnormal winter weather.

c. Electric utilities.

  • Electric utility companies benefit from both HDDs and CDDs, so the more frequent they are the better for them. They probably dislike mild weathers, but love extremes.

d. Amusement park operators.

  • Similarly to soft drink manufacturers, amusement park operators sell more during warm days, so they will be interested in reducing risks (hedging) against cold days.

Explanation:

Companies rely heavily on certain weather conditions and need to reduce risk will hedge weather risk.

Heating Degree Day (HDD) basically measures the demand for energy needed to heat some place, e.g. any type of building. If the temperature is below 65°, then people start to request that a place is heated (heating system turned on).

Cooling Degree Day (HDD) is basically the opposite, measures the demand for energy needed to cool some place. If the temperature is above 65°, then people start to request that a place is cooled (air conditioner turned on).

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Problems which deal with the direct distribution of products from supply locations to demand locations are called:____________.
SOVA2 [1]

Answer:

a. Transportation problems

Explanation:

In Business management, problems which deal with the direct distribution of products from supply locations to demand locations are called transportation problems.

Transportation is a supply chain technique which primarily includes all of the process involved in the distribution of finished goods and services from the production line to the consumers or end users, so as to meet their needs or wants.

6 0
3 years ago
1. Why do you think savings, scholarships, and state aid are good “preparation"
valentina_108 [34]

Savings, scholarships and state aid are good preparations steps for one to take before applying for federal financial aid because They help one to

save enough money to be able to pay for college and also prevent serious debt after graduating.

Financial intelligence is a vital and indispensable virtue one must cultivate,just like the question stated, before going high as to seek federal aid,it is imperative to start from savings, scholarships and state aid because those can help you after graduating and not put you through serious debt after graduating.

If you must apply for federal aid,that implies that you have tried other better, easier means and all proved abortive and the only option that is left is the federal aid.

And while on federal aid,plans must be made on the means to pay back all sorts of financial issues so that once graduated,the financial burden will be minimal.

4 0
3 years ago
The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number
8_murik_8 [283]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs.

Because there is unused capacity, we will not have into account the fixed costs.

Unitary cost= $3.25

It is more convenient to produce in house. The indifference price is $3.50.

6 0
4 years ago
On January 1, 2019, Fitbit goes public and issues 50 million shares at $20 per share. Fitbit had 200 million shares prior to goi
Elina [12.6K]

Answer:

$600 million

Explanation:

On January 1, 2020, the balance of common stock & APIC

Common stock & APIC = Paid-In Capital + Share Capital raised by issuing 50 million shares at $20 per share - Treasury Stock

Here

Paid-In Capital is $500 millions

Issue of 50 million shares at $20

Treasury Stock is 20 million shares at $45 per share

By putting the values, we have:

Common stock & APIC = $500 million + $1000 million - (20 million shares * $45 per share)

Common stock & APIC = $1500 millions - $900 million = $600 million

6 0
3 years ago
Handyman Hardware, a small community-based store, offers its consumers the option of using credit. Creditworthy individuals are
kondor19780726 [428]

Answer:

Read the potential thesis, as it appears below. Is the thesis specific enough to provide clear direction to the writer?

In "Claiming an Education," Adrienne Rich uses logos, ethos, and pathos.

5 0
3 years ago
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