Answer:
Arbitrage
Explanation:
Arbitrage occurs when the same good sells for different prices at different market. This price difference allows market participants to earn riskless profit .
In this case, the generator is more expensive in South Carolina when compared with other places. Thus, in order to earn riskless profit, people would buy where it is cheaper and sell at South Carolina where it is more expensive.
Economic theory suggest that if this kind of buying continues, soon the prices would be the same in both markets .
I hope my answer helps you
An efficiency ratio known as the capital intensity ratio provides valuable insight into a company's financial situation.
Capital Intensity Ratio = Total Assets/Total Revenue
Return on assets = Net income/Total Assets
Total Assets = Net income/Return on Assets= $389,100/0.086
Total Revenue = Net income/Net Profit Margin = $389,100/0.028
Capital intensity ratio = ($389,100 /0.086) / ($389,100 / 0.028) =0.33
This ratio reveals how much capital or other resources a company has to have in order to make single dollar in sales. This ratio is the inverse of the asset turnover ratio, making it simple to calculate the capital intensity ratio if you already know the asset turnover ratio. For all capital-intensive firms, we require a good or higher capital intensity ratio. A company that invests a significant amount of capital in its manufacturing process is said to be capital-intensive. E.g., Power generating facilities. A company that has made significant investments in assets to generate income has a high capital intensity ratio (CIR). A company with a low CIR is able to produce larger revenues while owning fewer assets. As a result, businesses can use this ratio to modify their capital budgeting and planning.
Learn more about Capital Intensity Ratio here
brainly.com/question/14594640
#SPJ4
<span>Decrease by $57,400 per month.
Looks look at the cash flow for continuing to produce product a and discontinuing product a.
Continuing to produce
Income = 15900 * $29 = $461,100
Variable Expenses = 15900 * 23 = $365,700
Fixed overhead = $109,000
Total cash flow = $461,100 - $365,700 - $109,000 = -$13,600
So the Lusk company is losing $13,600 per month while producing product a. Let's see what happens if they stop producing it.
Income = $0
Variable Expenses = $0
Fixed overhead = $71,000
Total cash flow = $0 - $71,000 = -$71,000
So if they stop producing it, their fixed overhead decreases, but is still at $71,000 per month, for a total loss per month of $71,000.
The conclusion is to either lose $13,600 per month, or $71,000 per month. So if they stop production of product a, their loss per month will increase by $57,400.</span>
Answer:
e. $638
Explanation:
payment to be made as per forward contract (IN $)
= 39960/ 1.682
= $23757.43
now the actual rate after 90 days is 1.638
payment at 1.638 rate = 39960/ 1.638
= $24395.6
loss by hedging = $24395.6 - $23757.43
= $638.17
Therefore, The U.S. firm have saved or lost $638 in U.S. dollars by hedging its exchange rate exposure.
Answer: Systems selling
Explanation:
The system selling is one of the type of business strategy that helps in understanding the selling process by sell he various types of products an the services in the market in the interrelated manner rather than independently.
According to the given question, the system selling is the concept in which the business deliver the goods by using the interlocking and also consolidating the products from the supplier.
Therefore, System selling is the correct answer.