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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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RKO Company sold bonds with a face value of $850,000 for $910,000. The bonds have a coupon rate of 8 percent, mature in 10 years
Alex73 [517]

Answer:

cash                910,000 debit

  bonds payable                 850,000 credit

  premium on BP                  60,000 credit

-- to record issuance of bonds --

interest expense 63700 debit

amortization                 4300 credit

cash                       68000 credit

--to record coupon payment at December 31th--

Explanation:

issuance:

cash proceed of 910,000 face value of 850,000 the 60,000 difference wil be a premium.

interest entry:

we multiply the carrying value of the bonds by the market rate

we calcualte the cash procees as ussual: face value x bond rate

the difference wil be the amortization on premium

910,000 x 7%  63,700

850,000 x 8% 68,000

amorization       4,300

5 0
2 years ago
Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the
Svetllana [295]

Complete question:

Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the problems they were encountering and what activities they were required to perform. Joe was performing a:

A. personality test

B. performance appraisal

C. BARS

D. job analysis

Answer:

Joe was performing a job analysis

Explanation:

Job analyzes are a set of protocols for defining the contents for the job and the features or criteria required for the execution of the tasks. Job analytics provide employers with knowledge that helps to recognize which personnel is ideally suited to particular work.

An example of a job analysis model might list tasks or activities of the job and determine each performance level. Within this way, the role of job analysis is critical. Many companies typically take the same generic approach without details on the task description. All workers are tested in a similar set of features or characteristics presuming that they are required for all work.

6 0
3 years ago
If you bought a new truck for $40,000 for your auto parts delivery service, and you estimated that the truck would last you 200,
krok68 [10]

Answer:

First year depreciation expense is $2,250

Explanation:

Total depreciation expense is given by:

Price - Salvage Value = 40,000 - 4,000 = 36,000

That $36,000 depreciation expense would be spread out for 200,000 miles.

So for the first year in which the truck is used 12,500 miles, the depreciation expense will be

\frac{36,000}{200,000}\times{12,500}{=2,250}

Question answered.

Note:

\frac{Depreciable \,Cost}{Units \,in \,Useful \,Life}{=Per-Unit\,Depreciation}

{Per-Unit\,Depreciation \times \,Units \,During \,Year = Annual \,Depreciation \,Expense

5 0
3 years ago
A new drug has not been approved by the FDA to sell in the U.S. because further testing is needed. The company has a chance to s
Juliette [100K]

Answer:

The correct answer is d. ethics.

Explanation:

Ethics is a systematic and critical analysis of morality, of the moral factors that guide human behavior in a given practice or society. As fishing represents an interaction between people and the aquatic ecosystem, fishing ethics refers to the values, rules, duties and virtues relevant to the well-being of people and the ecosystem, providing a critical normative analysis of the moral issues at stake. in that sector of human activities.

When moral values, rules and duties are subject to an ethical analysis, their relationship with the basic human interests shared by the population, regardless of their cultural environment, is particularly important. Moral values ​​can change and moral reasoning asks whether activities legitimated traditionally and in practice by religion, law or politics deserve to be recognized. Indeed, the evolution of ethics in the last century has been characterized by the tendency to change values ​​and overthrow the moral conventions that have guided relations between the sexes, between human beings and animals and between human beings and their environment. A more recent task of ethics is to offer resistance to these tendencies to globalization, commercialization and mastery of technology that erode biodiversity and valuable aspects of cultural identity and that could even threaten human rights. Although these trends are often presented as neutral in relation to values, they carry hidden hypotheses that are possible sources of inequality and abuse.

6 0
3 years ago
A FEATURE FILM PROMOTING ENTREPRENEURSHIP SOLD ALMOST HALF OF THE TOTAL TICKETS. TICKETS WERE PRICED AT PHP 75 FOR STUDENTS. IF
mezya [45]

Answer:

150 tickets

Explanation:

Writing out needed parameters :

Price per student ticket (price of one student ticket) = PHP 75

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The number of student tickets sold will be:

Total amout earned from sale / cost per ticket

PHP 11250 / PHP 75

= 150 tickets

6 0
3 years ago
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