The answer is true because activity is important and shouldn't be discouraged.
Answer:
If Division X refuses to accept the $19 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:_________.
c. worse off by $28,600 each period.
Explanation:
The $28,600 loss the company incurs is from the lost contribution that Division Y's purchase of Division X's parts could have brought to the company if it buys parts inhouse. This is calculated as follows:
Division X's variable cost per unit = $17
Division X's selling price to outside customers = $23
Division Y's offered buying price = $19
The contribution = $2 ($19 - $17)
Answer:
$39,220
Explanation:
The maturity value of the note receivable on June 30, 2012
= Principal + Interest
= $40,000 + $40,000 x 6%
= $40,000 + $2,400
= $ 42,400
The note is discounted on September 30, 2011. Time period remaining to go till maturity as on September 30, 2011
= 12 - 3 months ( July, Aug and Sep)
= 9 months.
Amount of deduction
= $ 42,400 x 10% x 9/12
= $ 3,180
Finally, the Cash received by Ireland will be
= Maturity value - Discount
= $42,400 - $ 3,180
= $39,220
Answer:
90 suits per week must be produced and sold to achieve the maximum profit of $2,850.
Explanation:
The profit function is given by the revenue function minus the cost function:
The number of suits, x, for which the derivate of the profit funtion is zero, is the production volume that maximizes profit:
The profit generated by producing 90 suits is:
Therefore, 90 suits per week must be produced and sold to achieve the maximum profit of $2,850.
Answer: $450 profit
The investor exercised the right to buy the stock for 60 and can sell the stock in the market for 68 for an $8 per-share gain.
The gain of 8 minus the premium of 3.50 gives the investor a profit of 4.50
(4.50 Ă— 100 = $450).
