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ZanzabumX [31]
3 years ago
14

Pick the correct statement related to bid price from below. Multiple Choice The bid price is the price you must charge to break

even at a zero discount rate. The bid price is the aftertax contribution margin. The bid price is the highest price you should charge if you want to win the bid. The bid price is the only price you can bid if the project is to be profitable. The bid price is the minimum price that will provide your target rate of return.
Business
1 answer:
statuscvo [17]3 years ago
3 0

Answer:

The bid price is the minimum price that will provide your target rate of return.

Explanation:

A market maker also known as a liquidity provider refers to an individual or business firm who is saddled with the responsibility of quoting a buy or sell price for a commodity with the hope of making profit on the ask-bid price.

The bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.

The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. Thus, a bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.

Hence, the bid-ask spread is simply the difference between the ask price and the bid price. Therefore, a bid-ask spread is a measure of the demand and supply for an asset; where demand represents the bid while supply represents the ask for an asset.

In the trading of a security, a dealer who is willing to sell an asset or securities would receive a bid price while the price at which the dealer is willing to sell his asset to another dealer (buyer) is the ask price.

A bid price can be defined as the amount of money (price) at which a market-maker (dealer) is willing to buy securities, commodities, or other assets.

This ultimately implies that, the bid price is the minimum price that will provide your target rate of return because it is the highest price a buyer is willing to pay to a market-maker (dealer) selling securities, commodities, or other assets.

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Southern Hydraulic Supply is undertaking a review of their inventory policies. A typical product is a small hydraulic fitting. C
zheka24 [161]

Answer:

$418,550

Explanation:

Steps are shown below:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{52,000}\times \text{\$50}}{\text{\$1.25}}}

= 2,040 units

b. The number of orders would be equal to

= Annual demand ÷ economic order quantity

= $52,000 ÷ 2,040 units

=  25.49 orders

c. The average inventory would equal to

= Economic order quantity ÷ 2

= 2040 units ÷ 2

= 1,020 units

d. The total cost of ordering cost and carrying cost equals to

Ordering cost = Number of orders × ordering cost per order

= 25.49 orders × $50

= $1,275

Carrying cost = average inventory × carrying cost per unit

= 1,020 units × $1.25

= $1,275

So, the total annual cost would be  

= Purchase cost + ordering cost + carrying cost

= $416,000 + $1,275 + $1,275

= $418,550

Purchase cost = Annual demand × cost per unit

                        = 52,000 × $8

                        = $416,000

6 0
3 years ago
Which of the following sections of a business plan contains information about the different departments in the company and what
gogolik [260]

Answer:

A. Organization

Explanation:

The organization and management section outlines the hierarchy of the people involved in the business. It provides the company's organizational structure in a  chart format.  This section detail the management team, internal and any external human resources that the company uses or intends to use. It may list their names and remunerations paid to each of them.

The organization section also defines how the different roles relate to each other when executing the business mandate.

3 0
3 years ago
Question text The first task of an event marketer is to Select one: a. Attract attendees b. Elicit sponsors c. Organize staff d.
Mamont248 [21]

Answer:

C. Organize staff

Explanation:

C. Organize staff is the answer.

7 0
3 years ago
The fact that a bank's assets tend to be long-term while its liabilities are short-term creates: multiple choice interest-rate r
kow [346]
Do you have any choices or any info so I can help you?
:)
6 0
3 years ago
What are the requirements (if any) for entering the military after high school?
tankabanditka [31]

Answer: You need a GED or High School Diploma

Explanation: In addition to being a United States citizen or permanent resident alien, you must have a high school diploma or GED to join the Army as an enlisted member. You must also meet height, weight and overall physical health standards. The minimum score you can get on the ASVAB test is a 31.

8 0
2 years ago
Read 2 more answers
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