Answer:
3. fall if the price index rises.
Explanation:
- According to the nominal income, the inflation is a one of the major factors that decrease the amount of the goods and the services that would be afforded with a given amount of the nominal incomes thus if the person wants to keep this real income steady for the next year's nominal income may fall as the increase of the inflation in the economy. And can erode the nominal income gains.
Answer:
$32,000
Explanation:
Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.
Cost of goods sold = Sales value - Gross Profit
Gross profit = Sales value - Direct costs - overhead costs
Gross profit per unit = $120 - ($50 + $ 20 + $10)
Gross profit per unit = $40 per unit
Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000
Budgeted sales value = Selling price per unit × Budgeted sales units
= $120 × 400 chairs = $48000
Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value
= $48000 - $16000 = $32000
<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.
Answer:
The answer is 14.87%
Explanation:
Solution
Given that:
A large company stock had an average return of =12.59%
The average risk free rate = 2.58%
A small company stocks average is =17.45
The next step is to find the risk premium on small-company stocks for this period
Thus,
The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate
So,
Risk premium on small-company stocks = .1745 - 0.258
=0.1487
Therefore the risk premium on small company stocks for the period was 14.87%
Answer:
Profit $3,567
I would exercise my option by buying the shares before the expiration .
Explanation:
Calculation of how much profit would you make trading $1,000,000
First step is to multiply the spot rate on the final day by the trading amount
3.4329s*$1,000,000
=$3,432,900
Second step is to divide the spot rate option by the strike price
3,432,900/3.4207
=$1,003,567
Last Step is to find the profit
Profit =$1,003,567-$1,000,000
Profit=$3,567
Therefore the amount of PROFIT you would make trading $1,000,000 will be $3,567
Based on the above calculation I would exercise my option by buying the shares before the expiration .
