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Delvig [45]
2 years ago
8

Which of the following statement is not true about derivative contracts?

Business
1 answer:
8090 [49]2 years ago
4 0

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

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Carmel Company has a frequent buyer program for its customers, where the customers can attain an "elite" level based on the numb
lisov135 [29]

Answer:

a.Titanium = $2,890,500

Platinum = $5,185,000

b. Platinum is more profitable

Explanation:

The computation of given question is shown below:

For Titanium

Total gross margin = 5,000 × $1,590

= $7,950,000

Salaries and bonus of Customer representative = ($68,000 × 5,000 ÷ 200) + (1% × $7,950,000)

= $1,700,000 + $79,500

= $1,779,500

b.

Promotion cost = $2,850,000 × 80%

= $2,280,000

Excess of gross margin over customer costs = Total gross margin - Salaries and bonus of Customer representative - Promotion cost

= $7,950,000 - $1,779,500 - $2,280,000

= $2,890,500

For Platinum

Total Gross margin = 20,000 × $ 325

= $6,500,000

Salaries and bonus of Customer representative = ($68,000 × 20,000 ÷ 2,000) + (1% × $6,500,000 )

= $680,000 + $65,000

= $745,000

Cost of promotion = $2,850,000 × 20%

= $570,000

Since, 80% is allocated for promotion expenses of titanium so we assume 20% for Platinum

Excess of gross margin over customer costs = Total Gross margin - Salaries and bonus of Customer representative - Cost of promotion

= $6,500,000  - $745,000 - $570,000

= $5,185,000

B. Since, Platinum is higher than Titanium. So, Platinum is more profitable.  

4 0
2 years ago
Which of these is not something the fed is able to do?
kykrilka [37]
The correct answer is "<span>Prevent a budget deficit".

The FED or also known as The Federal Reserve System cannot prevent a budget deficit or the excessive use of money of the country, and increasing of expenses instead of an increase in the country's revenue.</span>
5 0
3 years ago
Read 2 more answers
Personal trainers often work as independent contractors. What individual type of insurance is most recommended to purchase when
Andrei [34K]

Answer: Liability insurance

Explanation:

4 0
2 years ago
What does the purchaser of a product obtain besides the good service or idea itself?
-BARSIC- [3]

A buyer of a manufactured good not only obtains the good itself, amenity, or awareness, but also receives good after-sales services that aid in handling and increasing products efficiently. Providing this kind of services are important to the capability of the business to uphold fruitful relations as well as marketing mixes by creating continuous growth in products and over market research. Providing excellence after-sale deal encourages the goodwill of the business. This competence lets customers not to use money for maintenances for 1 or 2 years of warranty period.

8 0
3 years ago
Read 2 more answers
g Marginal revenue product (MRP) of labor refers to the: A. amount by which a firm's total resource cost increases when it emplo
UNO [17]

Answer:

c

Explanation:

Marginal revenue product (MRP) is the change in total revenue when one more unit of a resource is employed.

For example :

Units of labour    Revenue

1                             100

2                             200

The MRP of employing 2 units of labour = (200 - 100) / (2 -1) = 100                          

7 0
2 years ago
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