Answer: d. choose the price at which it sells its butter.
Explanation:
In a competitive market, the individual sellers do not choose a price to sell at but rather the market does. This is due to the high number of sellers in the market so individual sellers do not have bargaining power.
The price will therefore equal the firm's marginal revenue as well as Average revenue.
The fast burger is not an example of mechanistic
organization, therefore, it is false. It is because a mechanistic organization
should provide rules and tasks that are provided to each employee and the authority
should be centralized—in the given scenario, the mechanistic organization is
not seen above.
Answer:
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Explanation:
Giving the following information:
It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor hours to manufacture the X-2 Line.
Total overhead= 225,000 + 149,960= $374,960
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 374,960 / (80,900 + 93,500)
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Answer:
The price of the put-option on the same stock with the same strike price is $3.75.
Explanation:
To find the price of the put option on an underlying asset given the price on the call option's price for the same underlying asset with the same strike price is given, we apply put-call parity model.
Put call parity model: p = K x e^(-rT) + c - St .
in which: p: put option's price;
K: underlying asset's strike price;
r: risk-free rate;
T: time to maturity denominated in year;
c= call option's price;
St = spot price of underlying asset .
So, p = 50 x e^(-0.06 x 1/12) + 1 - 47 = $3.75 .
Answer:
c) $18,986
Explanation:
The computation of the payment of principal is shown below:
= Annual payment - (Balance of Principal × interest rate)
= $48,986 - ($250,000 × 12%)
= $48,986 - $30,000
= $18,986
We do not consider the time period. Hence, we ignored it as it is not relevant for the computation part.
We simply multiply the principal balance with the interest rate and then deduct it from the annual payment.
