Answer:
The given case relates to the movie Enron. In the movie, Jeffrey Skilling engineered transactions and falsely boosted stock values, allowing various stakeholders to earn higher returns at first. Arthur Anderson, the corporation's auditor, was involved in the investment fraud. Thus, initially to increase the share price the defaulters boosted their earnings.
Answer:
$191,500
Explanation:
If the item is not dropped:
Loss = Sales - Variable expenses - Fixed manufacturing expenses - Fixed selling and administrative expenses
= $923,000 - $405,500 - $337,000 - $244,000
= (63,500) loss
Fixed mfg. expenses remaining:
= Fixed manufacturing expenses - Avoidable Fixed manufacturing expenses
= $337,000 - $207,500
= $129,500
Fixed selling and administrative expenses remaining:
= Fixed selling and administrative expenses - Avoidable Fixed selling and administrative expenses
= $244,000 - $118,500
= $125,500
Loss in expenses remaining if item is dropped
:
= Fixed mfg. expenses remaining + Fixed selling and administrative expenses remaining
= $129,500 + $125,500
= ($255,000)
Overall net operating income would decrease by:
= Loss in expenses remaining if item is dropped - Loss in expenses if item is not dropped
= $255,000 - $63,500
= $191,500
Answer:
So they know what do when they fight back or attack
Answer: The market demand curve for soft drinks will shift to the left and the market supply curve will shift to the left as well: equilibrium quantity will decrease and the equilibrium price may rise, fall, or remain the same. The graphs below illustrate this idea.
Explanation:
Answer: a. U.S. Treasuries with 1 year to maturity
Explanation:
The Government guaranteed the price of the carbon and the payoff is to be one year later.
The opportunity cost will therefore be a similar Government security to the payoff term of the carbon sale which is 1 year.
The Government security with a similar payoff term is the US Treasury bill with 1 year left till maturity and this will be the opportunity cost because instead of the Government issuing and paying out that security they will instead pay for the carbon.
