JavaScript

Write a function called "first" that takes in two arguments - the first is an argument called arr that is an array of numbers, the second is an optional number argument called num(hint: you'll need a default value - look back at the slides).

If "num" was not passed in (since it's optional), the "first" function will return an array containing the first item of the array.

If a value for "num" was given, the "first" function will return an array containing the first "num" values of the array.

See the example output below.

console.log(first([7, 9, 0, -2])); // [7]
console.log(first([], 3)); // [undefined, undefined, undefined]
console.log(first([7, 9, 0, -2], 3)); // [7, 9, 0]
console.log(first([7, 9, 0, -2], 6)); // [7, 9, 0, -2, undefined, undefined]

1. Fast $, Inc produces silver and gold pendants. The data are as follows:

Silver                              Gold

Fixed Costs = $10,000; Labor hours available = 100

Are there enough labor hours to satisfy demand for both types?_____

1. Determine the contribution margin per labor hours for each

2. How many silver pendants and how many gold pendants would maximize profits? Prove your answer.

2. Given the following data, prove and explain whether the Red line of jewelry should be discontinued.

Sales                     $200,000

Variable Costs       125,000

Avoidable Fixed Costs     $80,000

Unavoidable Fixed Costs           $10,000

P18.8 (LO 2, 3) (Time Value, Gift Cards, Discounts) Presented below are two independent revenue arrangements for Colbert Company.

Instructions
Respond to the requirements related to each revenue arrangement.

Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows.

Redemption Total
March 31
50%
April 30
80%
June 30
85%
Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30.

Suppose that a city’s demand for hosting an Olympic Games is described by the demand curve P_D = 900 – 20Q, where Q is the number of Olympic events and P_D is measured in millions of dollars. (For example, to host 10 Olympic events, the city would be willing to pay $700 million.) The International Olympic Committee’s (IOC’s) marginal revenue from putting on Q events is MR = 900 – 40Q. The IOC’s marginal cost of putting on Q events is $100 million per event, so MC = 100.

If the IOC acts as a typical profit-maximizing monopolist, how many events would the city put on [1st blank], and at what price per event [2nd blank]? What is the consumer surplus of the city residents [3rd blank]? (Hint: A typical monopolist produces where MR = MC.)

Trade and cash discounts are an important business tool, and you will often find yourself on different sides of this, giving or receiving discounts. Remember, though, that these trade and cash discounts are either money given away entirely that you will never see or extensions of credit. You should never borrow 100% for everything nor is it a good idea to pay 100% cash all the time. If you are unsure as to why, go back and look at the Cash Flow discussion from Week 2. The question, though, is how comfortable are you with discounts? Would you rather take a discount for early payment or hold the cash for other uses and pay the full price? What are the advantages and disadvantages of each approach? Give some examples of when you might choose to do either of those.

For a non-dividend paying company. The current spot price of the company’s equity is $50 per share. The value of the stock will be at least $100 in 12 months.

S₀ = $50

T = 12 months

r = 30 basis points per month

u=1.1 per month

d = 1/u= 1.1^-1 per month

1. Apply the binomial tree model to value a 12-month European style call with a strike of $100. What is the call premium?
2. Use put-call parity to value the put on the same asset, for the same expiration, and with the same strike. What is the put premium?
3. The investor is considering two other calls. One with a strike of $200. Another with a strike of $0. What is the premium on the call with a strike of $200? Why? What is the premium on the call with the strike of $0? Why?

Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm’s total cost is given by the equation. TC = 100 + q^2 + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 1000 - 2Q where Q is the market quantity. In addition, you are told that the market supply curve is given by the equation P = 100 + Q

a. What is the equilibrium quantity and price in this market given this information?

b. What is the firm’s MC equation?

c. What is the firm’s profit maximizing level of production?

d. What is the total revenue?

e. What is the total cost?

f. What is the profit at this market equilibrium?

1. Susan sells a put to Peter on 6/1/20 and Susan agrees to purchase up to 1,000 shares of Microsoft stock from Peter at $90 per share anytime on or before 11/1/20. Peter had purchased the shares 9 months earlier for $100 per share. Microsoft is selling for $100 per share on 6/1/20. Peter pays Susan $10,000 for writing the put. The stock never falls below $95 per share and the put lapses without being exercised. How do Susan and Peter treat the writing of the put and its later lapse?
2. Same as except the price of Microsoft falls to $85 and Peter exercises the put. Susan agrees to pay Peter $5 per share ($5,000) to settle the put.