Answer:
When prices drop people usually go buy it even if it is a little drop.
Explanation:
They go because of a phycological difference in price.
Answer and Explanation:
The computations are shown below:
1. For annual implicit cost
= Earning annual salary + earned annual interest
= $80,000 + $500
= $80,500
2. For Annual accounting cost
= Explicit cost
= Direct expenses
= Office rent + rent of equipment + supplies + utilities + salary of a book keeper
= $15,000 + $3,000 + $1,000 + $1,200 + $35,000
= $55,200
3. For economic cost
= Accounting cost + implicit cost
= $55,200 + $80,500
= $135,700
4. For revenue
= Accounting profit + profit
= $55,200 + $50,000
= $105,200
5. For revenue
= Economic cost + profit
= $135,700 + $50,000
= $185,700
Answer:
Check the explanation
Explanation:
The price of the original asset is the same amount as the expected future price which are being discounted at the risk-free rate.
Price of Customized Derivative= Probability of return>0.2%*Pay off+ Probability of Return<0.2%*Payoff/(1+r)^T
= 0.5*$4000000+0.5*$1000000/(1+0.002)^1
=2000000+500000/1.002
=2000000+499001.99
$2499001.99
Answer:
Total Product Costs under absorption costing per unit $ 32.59
Explanation:
Under absorption costing the fixed overheads are included in the product costs. We calculate the total manufacturing costs having fixed overheads and variable overheads and divide it with the number of units to get the product cost per unit.
Expected units to be produced 51,000 units
Direct materials $ 12 * 51,000= $ 612000
Direct labor $ 18 per unit * 51,000= $918000
Overhead
Total variable overhead $ 31,000
Total fixed overhead $ 101,000
Total Manufacturing Costs $1662000
Total Manufacturing Costs per unit = Total Costs/ Total units= $1662000 / 51000= $ 32.59
Investment because u save up more money in what you want
