Answer: 72 cents
Explanation:
There will be a margin call when more than $1000 has been lost from the margin account so that the balance in the account is below the maintenance margin level. Because the company is short, each one cent rise in the price leads to a loss or 0.01×50,000 or $500. A greater than 2 cent rise in the futures price will therefore lead to a margin call. The futures price is currently 70 cents. When the price rises above 72 cents there will be a margin call.
Answer:
7,000 units
Explanation:
The units which were transferred to the Finished goods inventory during the month of February is computed as:
Units transferred to Finished goods inventory = Started units during February + Started the month with units in process - Ended the month with units in process
where
Started units during February is 6,700
Started the month with units in process is 890
Ended the month with units in process is 590
Putting the values above:
Units transferred to Finished goods inventory = 6,700 + 890 - 590
Units transferred to Finished goods inventory = 7,590 - 590
Units transferred to Finished goods inventory = 7,000
Answer: C. 15;5
Explanation: The answer is C. 15;5 because a long-term goal has to take longer than the short-term goal. In other words, the first number has to be bigger than the second number.
Answer:
The correct answer is: 70%.
Explanation:
According to the information in the case:
- Price elasticity of supply: 0.3
- Price elasticity of demand: 0.7
The percentage of the tax burden on the supplier is calculated in the following way:
Therefore, <em>the tax burden on the supplier is 70%.</em>