Answer:
Long Position
Profit exit point: sell limit= 8.33
Loss exit point= 41.66
Short Position
Lost exit point: buy stop= 58
Profit exit point:buy limit=40
Explanation:
Calculation to determine the profit and loss exit points for both long and short positions.
LONG POSITION profit and loss exit points
First step is to calculate the Profit exit point: sell limit
Profit exit point: sell limit=( 50x10% )/1.2
Profit exit point: sell limit=$10/1.2
Profit exit point: sell limit= 8.33
Now let calculate the Loss exit point
Loss exit point=50-8.33
Loss exit point= 41.66
SHORT POSITION profit and loss exit points
Lost exit point: buy stop=20%/x=1.2
Lost exit point: buy stop=20%/2
Lost exit point: buy stop=1.6
Lost exit point: buy stop= 50+(50x1.6)
Lost exit point: buy stop= 58
Now let calculate the Profit exit point:buy limit:
Profit exit point:buy limit=50-(50*.20)
Profit exit point:buy limit=40
On December 31, 2020, Dow Steel Corporation had 610,000 shares of common stock and 31,000 shares of 9%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $410,000 and $70,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 63,000 common shares. In keeping with its long-term share repurchase plan, 2,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,150,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2021.
Answer:
$3.02 per share
Explanation:
The computation of the earning per share is shown below:
we know that
Earnings per share = (Net income - preferred dividend) ÷ Weighted average outstanding common shares
= ($2,150,000 - $70,000) ÷ 688,000 shares
= $3.02 per share
Date Particulars No. of shares
01/01-31/12 610000 × 12 ÷ 12 (610000 × 1.04) $634,400
28/02-31/12 63000 × 10 ÷ 12 (52500 × 1.04) $54,600
01/07-31/12 (2000) × 6 ÷ 12 -$1,000
Weighted average outstanding common shares 688,000
Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.
Oct. 1. Paid rent for the month, $5,700.
3. Paid advertising expense, $3,610.
5. Paid cash for supplies, $1,550.
6. Purchased office equipment on account, $23,700.
12. Received cash from customers on account, $7,740.
20. Paid creditor on account, $2,270.
27. Paid cash for miscellaneous expenses, $980.
30. Paid telephone bill for the month, $360.
31. Fees earned and billed to customers for the month, $51,600.
31. Paid electricity bill for the month, $620.
31. Paid dividends, $3,900.
Answer:
would you still like me to help you with this question
whistle works manufacturers safety whistle keychains. They have the following information available to prepare their master budget whistle works sells eafch whistle for $12. It takes .25 direct labor hours to produce each whistle at a cost of $15 per hour. How much will direct labor cost be in December
Answer:
See below
Explanation:
The above information is incomplete. However, similar question will be used.
Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bearing account so that you can use it whenever you want (that is, hold it as money) or to use it to buy a U.S. Treasury bond.
The opportunity cost of holding the inheritance as money depends on the interest rate on the bond.
For each of the interest rates in the following table, compute the opportunity cost of holding the $10,000 as money.
Interest Rate on Government Bond (Percent) Opportunity Cost (Dollars per year)
8 _____ (10,000.00 / 800.00 / 0.08 / 8.00 / 125,000.00)
10 _____ (10,000.00 / 10.00 / 100,000.00 / 1,000.00 / 0.10)
What does the previous analysis suggest about for money?
a. The quantity of money demanded decreases as the interest rate rises.
b. The quantity of money demanded increases as the interest rate rises.
c. The supply of money is independent of interest rate.
Answer:
A. $800
B. $1,000
C. a. The quantity of money demanded decreases as the interest rate rises
Explanation:
A. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 8%
Opportunity Cost for 8% interest rate=$8%*$10,000
Opportunity Cost for 8% interest rate= $800
Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 8% will be $800
B. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 10%
Opportunity Cost for 10% interest rate =10%*$10,000
Opportunity Cost for 10% interest rate = $1,000
Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 10% will be $1,000
C. Based on the information given the previous analysis suggest about for money: THE QUANTITY OF MONEY DEMANDED DECREASES AS THE INTEREST RATE RISES.
"The Marlene Doll Co. uses a process costing system. Consider the following data for Dept. A. UNITS: W-1-P Nov. 1: 8,000 units, 100% completed for direct material 75% completed for conversion costs Started in November: 10,000 units Transferred to Dept B: 12,000 units W-1-P Nov. 30: 6,000 units, 100% completed for direct material 50% completed for conversion costs COSTS: W-1-P Nov. 1: Direct Materials $9,600 Conversion 4,800 Costs added in November: Direct Material $15,600 Conversion 14,400 a) Use the WEIGHTED AVERAGE method. Prepare a complete process costing schedule for Dept. A for November. Prepare a set of summarized journal entries for all November transactions affecting work-in-process, Dept A including the transfer to Dept B. Overhead was allocated at 400% of direct labor costs. Show all computations. b) Use the FIFO method. Prepare a complete process costing schedule for Dept. A for November. Show all computations."
Answer:
The Marlene Doll Co.
Weighted-AVerage Method
Cost of production:
COSTS: W-1-P Nov. 1: $9,600 $4,800
Costs added in November: 15,600 14,400
Total costs for the month $25,500 $19,200
Equivalent units of production:
Units Materials Conversion
Transferred to Dept B: 12,000 12,000 12,000
W-1-P Nov. 30: 6,000 6,000 3,000
Equivalent units 18,000 15,000
Cost per equivalent units:
Materials Conversion
Total costs for the month $25,500 $19,200
Equivalent units 18,000 15,000
Cost per equivalent unit $1.42 $1.28
Costs assigned to:
Units Transferred to Dept B: $17,040 $15,360 $32,400
(12,000 *$1.42) (12,000 * $1.28)
W-1-P Nov. 30: 8,520 3,840 12,360
(6,000 *$1.42) (3,000 * $1.28)
Total costs assigned $25,560 $19,200 $44,760
FIFO Method
Equivalent units of production:
Units Materials Conversion
W-1-P Nov. 1: 8,000 0 (0%) 2,000 (25%)
Units started & completed: 10,000 10,000 10,000
W-1-P Nov. 30: 6,000 6,000 3,000
Equivalent units 16,000 15,000
Cost per equivalent units:
Materials Conversion
Total costs for the month $15,600 14,400
Equivalent units 16,000 15,000
Cost per equivalent unit $0.975 $0.96
Costs assigned this month to:
Work-in-Process $0 $1,920 $1,920
(0 *$0.975) (2,000 * $0.96)
Units completed $9,750 $9,600 $19,350
(10,000 *$0.975) (10,000 * $0.96)
W-1-P Nov. 30: 5,850 2,880 8,730
(6,000 *$0.975) (3,000 * $0.96)
Total costs assigned $15,600 $14,400 $30,000
Total costs of:
Units transferred out $19,350 $16,320 $35,670
W-1-P Nov. 30: 5,850 2,880 8,730
Total costs $25,200 $19,200 $44,400
Explanation:
a) Data and Calculations:
Dept. A. UNITS:
Units Materials Conversion
W-1-P Nov. 1: 8,000 100% 75%
Started in November: 10,000
Transferred to Dept B: 12,000 100% 100%
W-1-P Nov. 30: 6,000 100% 50%
Bramble Company purchased a new van for floral deliveries on January 1, 2018. The van cost $66000 with an estimated life of 5 years and $13500 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance of the Accumulated Depreciation account at the end of 2019
Answer:
$42,240
Explanation:
The computation of the balance of the Accumulated Depreciation account at the end of 2019 is as follows;
But before that the depreciation rate is
= 1 ÷ 5 × 2
= 40%
For the first year, the depreciation expense is
= $66,000 × 40%
= $26,400
Now for the 2019, the depreciation expense is
= ($66,000 - $26,400) × 40%
= $15,840
Now the accumulated depreciation is
= $26,400 + $15,840
= $42,240
Name four commercial services which are useful to the manufacturer
Answer:
hu
Explanation:
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Applications that integrate business activities across departmental boundaries are often referred to as _____________ planning systems.
Answer:
Enterprise resource.
Explanation:
Enterprise Resource Planning (ERP) is a business strategy process where organizations manage and integrate the main parts of their day-to-day business activities by using software applications.
The ERP software system is used to integrate planning, accounting, finance, marketing and human resources.
For instance, when an organization is replacing a payroll program that it developed in house, with the relevant subsystem of a commercial Enterprise Resource Planning (ERP) system, It should be noted that a faulty migration of historical data from the old system to the new system represent the highest potential risk because you won't be able to measure and analyze performance.
Hence, software applications or programs that integrate all business activities across departmental boundaries such as marketing, procurement, customer relationship, sales, etc., are often referred to as enterprise resource planning systems.
You are evaluating a potential investment in equipment. The equipment's basic price is $176,000, and shipping costs will be $3,500. It will cost another $17,600 to modify it for special use by your firm, and an additional $8,800 to install it. The equipment falls in the MACRS 3-year class that allows depreciation of 33% the first year, 45% the second year, 15% the third year, and 7% the fourth year. You expect to sell the equipment for 30,900 at the end of three years. The equipment is expected to generate revenues of $151,000 per year with annual operating costs of $77,000. The firm's marginal tax rate is 35.0%. What is the after-tax operating cash flow for year 1
Answer:
$71,881.45
Explanation:
The after-tax operating cash flow for year 1 is simply the net income plus depreciation for year 1 since depreciation needs to be added back to net income as it is not a cash outflow in the actual sense.
net income=(revenue-annual operating costs-depreciation)*(1-tax rate)
revenue=$151,000
annual operating costs=$77,000
depreciation expense for year 1=($176,000+$3,500+$17,600+$8,800)*33%
depreciation expense for year 1=$67,947.00
tax rate=35.0%
net income=($151,000-$77,000-$67,947)*(1-35%)
net income=$3,934.45
after-tax operating cash flow for year 1=$3,934.45+$67,947.00
after-tax operating cash flow for year 1= $71,881.45
A department adds all raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 89100 units were started into production in January; and there were 19200 units that were 50% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?
Answer:
the equivalent units of production for materials for the month of January is 89,100 units
Explanation:
The computation of the equivalent units of production for materials for the month of January is shown below:
= Units completed + completed units in ending inventory
= (89,100 units - 19,200 units) + 19,200 units
= 69,900 units + 19,200 units
= 89,100 units
hence, the equivalent units of production for materials for the month of January is 89,100 units
A potential complication for successful price discrimination is a. multiple demand elasticities among consumers. b. the presence of a price maker in a market full of price takers. c. a product or service for which consumers value differently. d. other industry firms also practicing price discrimination. e. the potential for consumers to resell a product or service.
Answer: e. the potential for consumers to resell a product or service
Explanation:
Price discrimination refers to a practice by a producer/seller where they sell the same goods at different prices to different markets in order to make more profit.
Problems can arise if customers begin to resell these goods because some customers could buy it from markets where the producer charges less and sell it in markets where the producer charges more which would allow them to make profit at the producer's expense because they would be competing with the producer with the producer's own goods.
Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the following 5 years.
Answer:
12.60 %
Explanation:
Using the CF function of a financial calculator the internal rate of return will be calculated as follows :
- $177,000 CF 0
$21,000 CF 1
5 shift Nj
$29,000 CF 2
5 shift Nj
$42,000 CF 3
5 shift Nj
Then
Shift IRR = 12.60 %
therefore,
the internal rate of return for a project is 12.60 %
Zubin Ltd. had set the transfer price at $40 for the purchase of goods from its U.S. subsidiary. But the IRS audited the transfer price and determined that it should have been using a transfer price of $190. Assuming the adjustment results in an increase in U.S. tax liability of $200,000. Determine the penalty amount.
Answer:
Zubin Ltd.
The Penalty amount is:
Minimum = $10,000
Maximum = $50,000
Explanation:
a) Data and Calculations:
Company set transfer price = $40
IRs determined transfer price = $190
Increase in U.S. tax liability = $200,000
IRS penalty rate = 5% minimum for each month of default and not exceeding 25% maximum
Therefore, the penalty amount:
Minimum = $10,000 (5% of $200,000)
Maximum = $50,000 (25% of $200,000)
What is a certificate of deposit (CD)?
A. A savings product with a guaranteed rate of interest and a maturity date.
B. Written document that proves ownership in a company or a small business.
C. A receipt for buying a mutual fund.
D. A bond with yearly dividends.
Answer:
i believe the answer is b
During a job interview, Dario was unable to answer the interviewer's final question because it was slightly technical and he did not know the answer. He is worried that this one answer may cost him the job even though the rest of the interview went well. To possibly salvage his situation, Dario should
Answer:
He should restate a positive point that he would like the interviewer to know.
Explanation:
In an interview it is very important to create an impression that one can recover from a negative situation and stay positive.
In the given scenario where Dario was unable to answer the interviewer's final question because it was slightly technical and he did not know the answer, the way to express positivity is to restate a positive point that he will like the interveiwer to know.
In the interviewer's mind the conversation will now end on a positive note.
Given the following values of economic aggregates as a percentage of GNP in the U.S. Find the current account balance and the financial (capital) account balance assuming that statistical discrepancy is zero.
Unilateral Transfers = - 1.5%
Exports = 2.2%
Imports = 4.3%
Investment = 16%
Taxes = 12%
Government Exp. =. 17%
Private Saving. = 12%
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name the institution that investigates anti-competitive behaviour on companies in south africa
Explanation:
the competition committee of southafrica, set up in the year 1989 by the southafrica government under the competition act to empower to investigate, control and restrict business, abuse of dominant positions and merges in order to achieve equity and efficiency in the southafrica economy.
Big Canyon Enterprises has bonds on the market making annual payments, with 16 years to maturity, a par value of $1,000, and a price of $957. At this price, the bonds yield 9 percent. What must the coupon rate be on the bonds
Answer:
8.48%
Explanation:
Calculation to determine What must the coupon rate be on the bonds
First step is to find the coupon rate of the bond.
Coupon payment = $957 = C(PVIFA9.0%,16) + $1,000(PVIF9.0%,16)
Solving for the coupon payment will give us C= $84.83
Now let calculate the coupon rate using this formula
Coupon rate= Coupon payment/ Par value
Let plug in the formula
Coupon rate = $84.83 / $1,000
Coupon rate = .0848*100
Coupon rate =8.48%
Therefore the coupon rate on the bonds is 8.48%
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. Group of answer choices To find a project's IRR, we must find a discount rate that is equal to the WACC. A project's IRR is found by discounting the cash inflows at the WACC to find the present value (PV), then compounding this PV to find the IRR. None of these Answers To find a project's MIRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs. A project's MIRR is found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting this TV at the WACC
Ano ang dapat nating tandaan kapag nagbibigay ng pangunang lunas?
Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price
Question Completion:
A manufactured product has the following information for June.
Standard Actual
Direct materials 6 lbs. at $8 per lb. 48,500 lbs. at $8.10 per lb.
Direct labor 2 hrs. at $16 per hr. 15,700 hrs. at $16.50 per hr.
Overhead 2 hrs. at $12 per hr. $198,000
Units manufactured 8,000
Answer:
Direct materials price variance = $4,850 U
Direct materials quantity variance = $4,000 U
Explanation:
a) Data and Calculations:
Actual Standard
Direct materials price per lbs $8.10 $8.00
Direct labor rate per hour $16.50 $16.00
Quantity:
Direct materials 48,500 48,000 (6 * 8,000)
Direct labor hours 15,700 16,000 (2 * 8,000)
Direct materials price variance = SP - AP * AQ
= $8 - $8.10 * 48,500
= $0.10 * 48,500
= $4,850 U
Direct materials quantity variance = SQ - AQ * SP
= 48,000 - 48,500 * $8
= $4,000 U
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 6.4 hours Standard variable overhead rate $12.80 per hour The following data pertain to operations for the last month: Actual hours 2,650 hours Actual total variable manufacturing overhead cost $34,570 Actual output 150 units What is the variable overhead efficiency variance for the month
Answer:
See below
Explanation:
Given the following;
Standard hours per unit of output 6.4 hours
Standard variable overhead rate $12.80 per hour
Actual hours 2,650 hours
Actual output 150 units
To calculate the variable overhead efficiency variance, we will use the formula below;
Variable overhead efficiency variance
= (Standard quantity - Actual quantity) × Standard rate
Standard quantity = 150 units × 6.4 = 960
Variable overhead efficiency variance
= (960 - 2,650) × $12.80
= $21,632 unfavourable
Three major segments of the transportation industry are motor carriers, such as YRC Worldwide (YRCW); railroads, such as Union Pacific (UNP); and transportation logistics services, such as C.H. Robinson Worldwide, Inc. (CHRW). Financial statement information for these three companies follows (in thousands): YRC Union Pacific C.H. Robinson Sales $4,697,500 $19,941,000 $13,144,413 Average total assets 1,824,700 55,159,000 3,436,058 a. Determine the asset turnover for all three companies. Round to one decimal place. YRC Worldwide fill in the blank 1 Union Pacific fill in the blank 2 C.H. Robinson Worldwide fill in the blank 3 b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the efficient a firm is in using assets.
Answer and Explanation:
The computation is shown below:
a) Assets turnover
Particulars YRC UNP CH
Sales $4,697,500 $19,941,000 $13,144,413
Average total assets $1,824,700 $55,159,000 $3,436,058
Assets turnover 2.6 0.4 3.8
b. The ratio of sales to assets calculated the sales dollars i.e. earned for each assets. The more the no of sales dollars the more the firm would be considered efficient
Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level? If the government does nothing, what ensures that the economy still eventually gets back to the natural rate of output?
Digby's Elite product Dug has an awareness of 72%. Digby's Dug product manager for the Elite segment is determined to have more awareness for Dug than Andrews' Elite product Able. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Dug's existing awareness is lost every year. Assuming that Able's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Digby's Elite product manager should spend in promotion to earn more awareness than Andrews' Able product
Explanation:
would you still like me to help you with this question
She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%.
What is a promotion?Promotion in marketing is any sort of marketing communication that aims to persuade target audiences of the relative qualities of a given good, service, idea, or brand.
This place can be either cognitive or emotional. Promoting a product or service is intended to raise brand awareness, spark interest, enhance sales, or foster brand loyalty.
One of the fundamental components of the market mix, which also consists of the four Ps (product, pricing, location, and promotion), is this. It aids marketers in establishing a memorable spot in clients' minds.
Promotion includes the communication strategies a marketer does to spread knowledge about its goods. Visual and verbal information can both be conveyed.
One of the components of the promotional mix or promotional plan is promotion. These include event marketing, exhibits, and trade shows, as well as personal selling, advertising, sales promotion, direct marketing, publicity, and word of mouth.
A promotional strategy outlines the importance of each component of the promotional mix as well as how much of the budget should be devoted to each component.
Learn more about promotion, here
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You are offered the following investments: You can invest $500 today and receive $600 in 5 years. The investment is low risk. You can invest the $500 in a bank account paying 4%. What is the implied interest rate for the first choice, and which investment should you choose
Answer:
500
Explanation:
1 pts A $1.50 tax levied on the buyers of pomegranate juice will shift the demand curve Group of answer choices upward by exactly $1.50. upward by less than $1.50. downward by exactly $1.50. downward by less than $1.50.
Answer:
downward by exactly $1.50
Explanation:
The market for agricultural products is perfectly competitive
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Consumers demand in perfect competition is elastic
If prices increases, the demand curve shifts downward by exactly the increase in price
Select the behavior that does NOT represent an example of a speaker effectively preparing for a lecture.
a. John types up a copy of his speech in case he has an unexpected moment of stage fright.
b. Eva memorizes her entire speech because she wants to avoid the rigidity of reading off of a piece of paper.
c. Matt has anxiety about giving his speech, so he works on his linguistics homework to distract himself.
d. Molly records herself giving her speech and plays it back to be sure that she is speaking clearly.
Answer:
c. Matt has anxiety about giving his speech, so he works on his linguistics homework to distract himself.
Explanation:
The behavior that represent the examples with respect to the speaker effectively preparing for the lecture are as follows:
a. The john types a copy of his speech where there is non expected moment comes
b. Eva remember her total speech as she want to neglect the rigidity
c, The molly records her speech and she plays it back so to be sure that she speaks clearly or not
So as per the given situation, the option c should be considered
Synthetic clothing releases fibers during the washing process, which then end up poisoning rivers, lakes, and oceans. Fish and other wildlife consume the microfibers, accumulating toxins in their bodies that can become concentrated as they travel up the food chain. The production of synthetic clothing is an example of market failure due to:___________
a) the nature of public goods.
b) asymmetric information
c) external costs
d) misinformation
Answer:
c) external costs
Explanation:
The production of synthetic clothing represent the example of the external cost as the external costs is the cost that are spend by an individual or firm in which the outcome of an economic transaction that are indirectly included. In this the cost could occurs from both the production and the consumption
So as per the given situation, the option c is correct
Pestro manufactures a herbicide that is used in the parks in Metroville. After the parks were sprayed with the herbicide, a group of children became ill and required hospitalization. Two dogs that were also in the park that day died. The parents of the children and the dog owners could:____.
a. not bring suit against the city.
b. only bring suit against the city.
c. not bring suit against Pestro because of a lack of privity.
d. bring suit against Pestro under Section 402A even though there is no privity.
Answer:
d. bring suit against Pestro under Section 402A even though there is no privity.
Explanation:
Section 402A enforces strict liability for physical harm that is caused a by the product sold to a buyer by a seller.
It states that if a seller sells a defective product that is unreasonably dangerous to an end user, the seller will be liable for any physical harm that results from its use.
Privity is when a contractual relationship exists between different parties in a transaction.
In the given scenario even without a privity the parents of the children and the dogs can bring suit against Pestro under Section 402A even though there is no privity.
They don't have to have a direct contractual relationship with Pestro.