Net operating income was $24000
Fixed expenses=$96000
Sales=$300000
cost per unit=$20
unit sales=$15000 units
CM=$120,000
CM per unit=$8
BE units=FC/CM per unit=96000/8=12,000 units
Answer:
d. $489,500
Explanation:
The capitalized cost will include all the costs incurred by Holiday laboratories to readily make the asset for use.
Therefore,
Capitalized cost = High speed industrial centrifuge + Shipping cost + Foundation cost + Equipment cost + Labor and testing cost + Material cost
= $440,000 + $30,000 + $8,600 + $3,000 + $5,300 + $2,600
= $489,500
Suppose there is a decrease in the price of butter.There will be an increase in demand for bread.
<h3>Option (B) is correct</h3>
<u>Explanation:</u>
Bread and butter are complementary goods. They are demanded and consumed together. So their demand are positively correlated which means an increase in demand of one will lead to the same increase the demand of other
If the Price of butter decreases, it will lead to an increase in the demand for butter. With the increasing demand for butter, the demand for bread will automatically increase. Both demands will move in the same direction.
A customer who is long 1 OEX may 315 call exercises the contract on this day. the customer will receive $58.00. Option A
This is further explained below.
<h3>What is called exercises?</h3>
Generally, If you possess a call option and the current stock price is greater than the strike price, it makes financial sense for you to execute your call option at this time.
You are able to make a profit by purchasing the stock at a lower price so that you can either instantly resell it to the market at a higher price or keep it for the long term.
In conclusion, On this day, a client who is long 1 OEX and has a 315 call option on the contract may execute it. The total amount that the client will get is $58.00. Alternative A
Read more about call exercises
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