Answer: lower cost
Explanation:
An insurance policy is a contract between an insurance company and a policyholder, which helps the policyholder to be able to make claims when there's an accident or death in case of life insurance.
In the above scenario in the question, if a driver with an insurance policy drives infrequently, it can lower costs.
Therefore, the correct option is B.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Activity Data Activity Cost
Inspecting components (sampling only) $ 210,000
Reworking products (due to failed component) $2,454,000
Warranty work (due to failed component) $1,923,000
Sampling hours:
Hydra 60
Parabel 2,600
Activity rate= 210,000/(2,660)= $78.95= $79 per hour
Answer:
Contribution margin per machine hour for bread machines = $320
Explanation:
From the question, the following can be deduced:
Selling price Variable costs Contribution/unit
Toaster Ovens $100 $60 $40
Bread machines $140 $60 $80
In each machine hour, six toaster ovens per machine hour and four bread machines are manufactured
Total contribution margin per machine hour = 6*40+4*80 =$560
Of which contribution margin per machine hour for bread machines = 4*80=$320
I think the answer is C hope this helps!
Answer:
d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.
Explanation:
A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.
A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.
Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid
wherein CMP= Current Market Price
A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.
Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.
