Answer:
The answer is B) $21,400
Explanation:
We are required to determine the total activity costs for the return and shipping activities for product 1.
Shipping activity has a cost of $20 per shipment.
Sebastian made 800 shipments. The cost of this will be 800 x $20 = $16000
It is given that there were 90 returns. The cost per return is $60. The total costs of the returns are $5400.
The total costs are thus 16000 + 5400 = $21400
Therefore the answer is B) $21,400
Answer:
correct option is b. $36
Explanation:
given data
bought = $1,000 par convertible
convertible into common = $32 per share
bond market price increases = 12.5%
solution
we know that conversion ratio is fixed when the convertible security are issued and it does not change
we have bond is issued with a conversion price = $32
so as per each bond converting conversion ratio will be
conversion ratio = = 31.25 : 1
so by every bond which is converted , then receives = 31.25 share
so now bond price will be = $1125
parity price of the stock will as =
parity price of the stock = $36
correct option is b. $36
B) a destination contract
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