Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor hours per unit of product 3.20 Number of finished units produced 6,500 Standard wage rate per direct labor hour (SP) $ 19.20 Total direct labor payroll for the period $ 359,424 Actual wage rate per direct labor hour worked (AP) $ 16.00 The actual direct labor hours worked (AQ) during November (rounded to the nearest whole number) was:
Answer:
22,464 hours
Explanation:
Calculation to determine The actual direct labor hours worked (AQ) during November
Using this formula
Actual direct labor hours worked (AQ) = Total labor cost ÷ Actual wage rate
Let plug in the formula
Actual direct labor hours worked (AQ) = $359,424 ÷ 16
Actual direct labor hours worked (AQ) = 22,464 hours
Therefore The actual direct labor hours worked (AQ) during November will be 22,464 hours
Yilan Company is considering adding a new product. The cost accountant has provided the following data.
Expected variable cost of manufacturing $ 50 per unit
Expected annual fixed manufacturing costs $ 92,000
The administrative vice president has provided the following estimates.
Expected sales commission $ 4 per unit
Expected annual fixed administrative costs $ 48,000
The manager has decided that any new product must at least break even in the first year.
Required:
Use the equation method and consider each requirement separately.
a. If the sales price is set at $74, how many units must Yilan sell to break even?
b. Yilan estimates that sales will probably be 10,000 units. What sales price per unit will allow the company to break even?
c. Yilan has decided to advertise the product heavily and has set the sales price at $78. If sales are 8,000 units, how much can the company spend on advertising and still break even?
Answer:
Following are the responses to the given choices:
Explanation:
In point a:
[tex]\text{Break even point} ( in \ units ) =\frac{Fixed\ cost}{contribution}[/tex]
[tex]=\frac{140000}{20}\\\\=7000 \ units[/tex]
In point b:
[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]
[tex]=\$ 54 +\$ 14 \\\\= \$ 68[/tex]
[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]
[tex]=\$54 +\$ 14\\\\=\$ 68[/tex]
Claim of work
Fixed unit costs For sale It is 4,000 units likely
[tex]\text{Units Fixed costs} = \frac{Total \ Fixed- cost}{Units \ Fixed-costs}[/tex]
[tex]= \frac{\$140,000}{10,000}\\\\=\$14[/tex]
In point C:
Sales([tex]8,000 \ units \times 78[/tex]) [tex]\$624,000[/tex]
Less : Cost of Variable ([tex]8000\times 54[/tex])[tex]\$432000[/tex]
Contribution [tex]\$192,000[/tex]
Less: Fixed cost [tex]\$140,000[/tex]
advertising balance [tex]\$52,000[/tex]
They realize there's no benefit and thus no loss at breakeven pomt.
Marigold Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $620000. The company used 1000 hours of processing for Job A15 during the period and incurred actual overhead costs of $630000. The budgeted machine hours for the year totaled 20000. What amount of manufacturing overhead should be applied to Job A15
Answer:
$31,000
Explanation:
Overhead rate = $620000 / 20000 = $31.00
Applied overheads = 1000 x $31.00 = $31,000
manufacturing overhead should be applied to Job A15 are $31,000
Compute the weight of common equity that should be used in the firm's WACC calculation if the market value of the firm's debt is $62 million, the market value of the firm's preferred stock is $7 million and the market value of the firm's common equity is $111 million. Enter your answer as a decimal (i.e. 0.54)
Answer:
0.62 or 62 %
Explanation:
Weight of common equity = Market Value of Equity ÷ Total Market Value of Sources of Finance
where,
Market Value of Equity = $111 million
Total Market Value of Sources of Finance = $62 million + $7 million + $111 million = $180 million
therefore,
Weight of common equity = $111 million ÷ $180 million
= 0.62 or 62 %
Conclusion
the weight of common equity that should be 0.62 or 62 %
Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate is 6%A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 30%. a. What is the investment proportion, y
Answer:
y = 0.76923076923 or 76.923076923% rounded off to 76.92%
So, 76.92% of the portfolio should be invested in risky portfolio.
Explanation:
The portfolio standard deviation for a portfolio consisting of two securities with one of them being the risk free security is calculated by multiplying the standard deviation of the risky security by the weightage of investment in the risky security as a proportion of the overall investment in portfolio. The formula can be written as follows,
Portfolio STDEV = Weight of Risky Asset * STDEV of risky asset
30% = y * 39%
30% / 39% = y
y = 0.76923076923 or 76.923076923% rounded off to 76.92%
this is my Halloween costume
Answer:
Crankyyyy um. lolipop
Explanation:
u Look
how does unsafe food harm us
Answer:
Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. Foodborne diseases impede socioeconomic development by straining health care systems, and harming national economies, tourism and trade.
Personalities fit into at least one of (blank)
different categories.
A.ten
B.seven
C.three
D.five
Which of the following statements are true?
a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
d. Pellegrini Southern Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving.
Answer:
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening. TRUE
higher liabilities respect to current assets, decrease the company's ability to meet its short term payments
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. TRUE
the current ratio = current assets / current liabilities
the quick ratio = (current assets - inventory) / current liabilities
the difference between both shows the dependence on selling inventory to pay off debts.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving. TRUE
A marketer of automobiles wants to introduce a new model using a message
that combines visuals, music, words, and action. Which category of
advertising media will best meet this marketer's goals?
A. Magazines
B. Television
C. Radio
D. Outdoor
Answer: Television!
Explanation:
Radio, Magazine, and Outdoor don't all have the combined visuals, music, words, and action that television has.
Television as the advertising media will best meet the automobile marketer's goals. Thus, the correct answer is option B.
What is advertising media?The term "advertising media" describes a range of mainstream or alternative media platforms via which companies can market their goods, services, or brand. Knowing which advertising media channels are advantageous for your business can be vital in staying ahead of the competition because it is hard for every customer to be aware of every brand's offerings. Marketers can interact with various audiences in unique ways by utilizing the correct kind of advertising media.
Audio and visual are combined in television. This produces a multi-sensory advertising experience that demonstrates to consumers the worth of your goods. The touchpoint occurs in the viewer's house when an advertisement is shown on television. It becomes a more intimate medium as a result. A excellent technique to build a personal relationship with a viewer is through television.
Therefore, Radio, Magazine, and Outdoor as the media for advertising don't have the combined visuals, music, words, and action that television has.
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Sunland Company uses a perpetual inventory system. Its beginning inventory consists of 83 units that cost $56 each. During June, (1) the company purchased 248 units at $56 each on account, (2) returned 10 units for credit, and (3) sold 206 units at $83 each on account. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Item 1
Debit : Merchandise $13,888
Credit : Accounts Payable $13,888
Item 2
Debit : Merchandise $560
Credit : Accounts Payable $560
Item 3
Debit : Accounts Receivable $17,098
Debit : Cost of Sales $11,536
Credit : Sales Revenue $17,098
Credit : Merchandise $11,536
Explanation:
See the journal entries prepared above.
Vaughn Manufacturing sells its product for $60 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $14, direct labor $15, and variable overhead $5. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. The per unit manufacturing cost under variable costing is
Answer:
$2.00
Explanation:
Consider Variable Manufacturing Costs only.
The per unit manufacturing cost under variable costing is $2.00
Barans Company purchased merchandise on account from a supplier for $12,900, terms 1/10, n/30. Barans Company returned $2,500 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? $fill in the blank 1 b. What account is credited by Barans Company to record the return?
Answer: See explanation
Explanation:
a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?
The amount of cash required for the payment will be:
Purchases: = $12,900
Less: Returns = $2500
Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104
Cash required for payment = $10296
b. What account is credited by Barans Company to record the return?
Based on the information above, the merchandise inventory will be credited.
IF IT'S RITE I WILL REWARD BRAINLIEST. Someone who works in quality assurance would spend their days meeting with customers and convincing them to buy the company’s products.
A.
True
B.
False
Answer: True
Explanation:
Quality assurance is assuring the customer that the product will work and that they will even offer a warranty if it some how breaks for free.
Answer:
True
Explanation:
A soup kitchen falls under what type of organization?
National School Lunch Program
Nutrition Program for the Elderly
Expanded Food and Nutrition Education Program
Food Bank
food bank because they used a soup kitchen during the Great depression and it's for the homeless people too it has to be program
Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $170,000; beginning inventory $125,000; cost of goods sold $351,050 and sales revenue $761,000.
a. Calculate the inventory turnover for Oakley, Inc.
b. Calculate the days in inventory for Oakley, Inc.
Answer and Explanation:
The computation is shown below:
a. The inventory turnover is
= Cost of Goods Sold ÷ Average Inventory
= $351,050 ÷ ($170,000 + $125,000) ÷ 2
= $351,050 ÷ $147,500
= 2.38 times
b. Now days in inventory is
= 365 ÷ inventory turnover ratio
= 365 ÷ 2.38 times
= 153.36 days
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$8,850;$7,150
Explanation:
Calculation for Departmental delivery expenses for Dept. Y
Using this formula
Departmental delivery expenses Dept. Y= Direct expense + Indirect expense × given percentage
Let plug in the formula
Departmental delivery expenses Dept. Y= $1,700 + $14,300 × 50%
Departmental delivery expenses Dept. Y= $1,700 + $7,150
Departmental delivery expenses Dept. Y= $8,850
Calculation for Departmental delivery expenses for Dept. Z,
Using this formula
Departmental delivery expenses for Dept. Z= Indirect expense × given percentage
Departmental delivery expenses for Dept. Z= $14,300 × 50%
Departmental delivery expenses for Dept. Z= $7,150
Therefore The Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:$8,850;$7,150
Jones Furniture Company produces beds and desks for college students. The production process requires carpentry and varnishing. Each bed requires 6 hours of carpentry and 4 hour of varnishing. Each desk requires 4 hours of carpentry and 8 hours of varnishing. There are 36 hours of carpentry time and 40 hours of varnishing time available. Beds generate $30 of profit and desks generate $40 of profit. Demand for desks is limited, so at most 8 will be produced.a. Formulate the LP model for this problem. b. Solve the problem using the graphical method.
Explanation:
To formulate the LP model for this problem,
Let,
X1 = Number of beds to produce
X2 = Number of Desks to produce
Our objective function:
Max: 30X1 + 40X2
Constraints:
6X1 + 4X2 ≤ 36 available carpentry hours 4X1 + 8X2 ≤ 40 available vanishing hoursX2 ≤ 8 (demand for X2)X1, X2 ≥0Based on the constraints information as well as the objective function you can then solve using the graphical method.
What is the Best loan option for your
lemonade Stand? Why?
Answer:
Short term loan
Explanation:
Lemonade stand can be regarded as a small business, Hence, the loan that suit the business is " Short term loan".
Short term loan can be regarded as loan that can be obtained to give support to ones personal as well as business capital. It is designed for the needs of small business capital with less interest compare to long term loan. The period of payment is usually within a year. It is of low risk and good profit.
On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1.
How much of the first payment made on December 31, Year 1, represents interest expense?
a 2400
b 400
c 2304
d 2000
Answer:
d 2000
Explanation:
The computation of the interest payment made is shown below:
Interest expense is
= Mortgage liability × rate of interest × given months ÷ total months
= ($200,000 × 12%) × 1 ÷ 12
= $24,000 × 1 ÷ 12
= $2,000
Hence, the correct option is d.
Identify some of the gains that labor unions have made in the United States. What gain do you think is the most important? Why? 15 points
Answer:
Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)
Explanation:
hope this helps :)
Answer:
he is correct it is...
Explanation:
"Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)"
Wearing a headset or earplugs while driving is legal
A. As long as you keep the volume down
B. For any person operating an authorized emergency vehicle
C. Even if you keep both ears covered
D. Only if your radio is broken
Marketing managers from two companies agree that competing to offer the lowest prices has been hurting their profit margins, so they agree on the prices they will charge for some of their key products. What illegal pricing behavior is this? O A. Price discrimination O B. Deceptive pricing C. Price fixing O D. Price gouging
Price fixing is the illegal pricing behaviour is this. Hence, option C is correct.
A written, verbal, or conduct-based agreement to raise, lower, maintain, or stabilize prices or price levels is known as price fixing. Antitrust laws typically mandate that each business establish prices and other competitive terms independently, without consulting a rival.
Competitors who agree to raise, cut, or stable prices are said to have engaged in horizontal price fixing. For instance, a horizontal agreement between two rival fast-food establishments selling hamburgers on the sale pricing of cheeseburgers is prohibited by antitrust rules.
Price fixing is an anticompetitive agreement between players on the same side of a market to buy or sell a good, service, or commodity solely at a set price, or to keep the market's dynamics in such a way that the price is kept at a fixed level.
Thus, option C is correct.
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Answer:
price fixing
Explanation:
Question 1: Sales price variance, sales volume variance, and fixed cost variance Budgeted Actual Price $300 $350 Sales volume in units 80 75 Unit VC $100 $120 Fixed costs $100,000 $120,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance F U sales volume variance F U fixed cost variance F U b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number. sales price variance
Answer:
a-1 Sales price variance is favorable (F).
a-2 Sales volume variance is favorable (F).
a-3 Fixed cost variance is unfavorable (U).
b-1 Sales price variance = $3,750
b-2 Sales volume variance = -$1,500
b-3 Fixed cost variance = -$20,000
Explanation:
Note: This question is not complete an the data in its are merged together. The complete question with the sorted data are therefore provided as follows:
Question 1: Sales price variance, sales volume variance, and fixed cost variance
Budgeted Actual
Price $300 $350
Sales volume in units 80 75
Unit VC $100 $120
Fixed costs $100,000 $120,000
a) Without computations, characterize the following variances as favorable or unfavorable:
sales price variance F U
sales volume variance F U
fixed cost variance F U
b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.
sales price variance
sales volume variance F U
fixed cost variance
The explanation of the answers is now given as follows:
a) Without computations, characterize the following variances as favorable or unfavorable:
a-1 Sales price variance F U
When the Actual price is greater than the Budgeted price, Sales price variance is favorable (F). But when the Actual price is less than the Budgeted price, Sales price variance is unfavorable (U).
Since the Actual price is greater than the Budgeted price in this question, the Sales price variance is favorable (F).
a-2 Sales volume variance F U
When the Actual sales volume in units is greater than the Budgeted sales volume in units, Sales volume variance is favorable (F). But when the Actual sales volume in units is less than the Budgeted sales volume in units, Sales volume variance is unfavorable (U).
Since the Actual sales volume in units is less than the Budgeted sales volume in units in this question, the Sales volume variance is unfavorable (U).
a-3 Fixed cost variance F U
When the Actual Fixed costs is less than the Budgeted Fixed costs, Fixed costs variance is favorable (F). But when the Actual Fixed costs is greater than the Budgeted Fixed costs, Fixed costs variance is unfavorable (U).
Since the Actual Fixed costs is greater than the Budgeted Fixed costs in this question, the Fixed costs variance is unfavorable (U).
b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.
b-1 Calculation of sales price variance
This can be calculated as follows:
Sales price variance = (Actual price - Budgeted price) * Actual sales volume in units = ($350 - $300) * 75 = $3,750
b-2 Calculation of sales volume variance
This can be calculated as follows:
Sales volume variance = (Actual sales volume in units - Budgeted sales volume in units) * Budgeted price = (75 - 80) * $300 = -$1,500
b-3 Calculation of fixed cost variance
Fixed cost variance = Actual fixed costs - Budgeted fixed costs = $120,00 - $100,000 = -$20,000
On January 2, 2020, Swifty Corporation wishes to issue $5100000 (par value) of its 7%, 10 year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10N Using the interest factors below.compute the amount that Swifty will realize from the sale (issuance of the bands Present value of lat 756 for 10 periods 0.5083 Present value of 1 at 1096 for 10 periods Present value of an ordinary annuity at for 10 periods 70236 Present value of an ordinary annuity at 10 for 10 periods 6.1446 a. $5100031 b. $5640733 c. $4159672 d. $5100000
Answer:
c. $4159672
Explanation:
Computation to determine the amount that Swifty will realize from the sale
First step is to calculate the annual interest payment
Annual interest payment=$5,100,000 × .07
Annual interest payment=$357,000
Now let calculate the amount that Swifty will realize from the sale
Sales realized amount=($347,000 × 6.1446) + ($5,100,000 × 0.3855)
Sales realized amount=$2,193,622+ $1,966,050
Sales realized amount =$4,159,672
Therefore the amount that Swifty will realize from the sale will be $4,159,672
Huduko Inc. offers a number of computer services. Huduko operates with a utilization of 30 percent. The interarrival time of jobs is 8 milliseconds (0.008 second) with a coefficient of variation of 1.5. On average, there are 20 jobs waiting in the queue to be served and 60 jobs in process (i.e., being processed by a server rather than waiting to be sent to a server for processing).
Required:
How many servers do they have in this system?
Answer:
Huduko Inc.
The number of servers in this system is:
= 200.
Explanation:
a) Data and Calculations:
Utilization rate = 30%
Interarrival time of jobs = 8 milliseconds (0.008)
Coefficient of variation = 1.5
Average jobs waiting in the queue to be served = 20
Number of jobs in process = 60
Number of servers processing the 60 jobs = 60
Since the number of servers processing at a time is 60 with a utilization rate of 30%, it means that there are 200 servers in the system (60/30%).
what is a savings and loans bank? advantages and disadvantages.
Three advantages of savings accounts are the potential to earn interest, it's easy to open and access, and FDIC insurance and security. Three disadvantages of savings accounts are minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal.
Information for two companies in the same industry, Skysong Corporation and Sheridan Corporation, is presented here. Skysong Corporation Sheridan Corporation Cash provided by operating activities $166,000 $166,000 Net earnings 240,000 240,000 Capital expenditures 71,000 97,000 Dividends paid 6,800 27,000 Compute the free cash flow for each company. Skysong Corporation Sheridan Corporation Free cash flow
Answer:
See below
Explanation:
Fee cash flow computation for SKYsong corporation.
Free cash flow
Net earnings
$240,000
Cash provided by operating activities
($166,000)
Capital expenditures
($71,000)
Dividends
($6,800)
Cash flow balance
($3,000)
Free cash flow computation for Sheridan Corporation
Free cash flow
Net earnings
$240,000
Cash provided by operating activities
($166,000)
Capital expenditures
($97,000)
Dividends
($27,000)
Cash flow balance
($50,000)
Practice Drawing Timelines!
Purpose: This section describes how to draw a timeline and visualizing the problem being presented. It is important because a time problem that is set up incorrectly will lead to incorrect answers. For each of the descriptions below, draw the timeline on your own.
Inserted a picture of your timeline (the picture can be a jpeg or pasted in a word document).
Criteria: Full points will be based three separate timelines attached as a picture. Your work should be original and not copied, borrowed, or obtained from another student (this would be cheating as defined by Texas Tech University and stated in the syllabus).
Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).
Answer:
1. Since the last cash flow occurs at year 5, the timeline ends at 5th year.
2. Since the same cash flow for a finite time of 8 years, the timeline ends at 8th year.
3. The 3 dots at the end of the timeline indicates a perpetuity.
Explanation:
A timeline refers to a line that shows the timing and amount of cash flows. Therefore, we have:
1. Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
Note: See number 1 in the attached photo for the timeline.
The fact that the last cash flow occurs at year 5 makes the timeline to end at 5th year.
It can also be seen in the timeline that the 6% discount rate is shown in between the previous period and the next.
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
Note: See number 2 in the attached photo for the timeline.
The fact that the same cash flow for a finite time of 8 years makes the timeline to end at 8th year.
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).
Note: See number 3 in the attached photo for the timeline.
It should be noted the 3 dots at the end of the time line indicates a perpetuity.
A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $5.05. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is: a.$102.32 Answer:The net profit is $ -2.73 b.$97.62 Answer:The net profit is $ -7.43
Answer and Explanation:
The computation is shown below:
In the case when the stock price is $102.32
So, the net profit is
= $102.32 - $100 - $5.05
= -$2.73
In the case when the stock price is $97.62 is
= $97.62 - $100 - $5.05
= -$7.43
Hence, the same would be considered and relevant too