Questions
Avanti Ltd produces two mixers. Stand mixer and hand mixer. The selling price of a Stand...

Avanti Ltd produces two mixers. Stand mixer and hand mixer. The selling price of a Stand mixer is $500, and the selling price of a hand mixer is $150. The variable cost per unit for the stand mixer is $300 and the variable cost per unit of the hand mixer is $ 100. The direct labour hour requirement and demand for the two products are:

stand mixer Hand mixer
Monthly demand 500 1000
Direct Labour hour required per unit 2.5 hours 1.5 hours

Avanti Ltd's production capacity is 1500 direct labour hours. The optimal profit that Avanti can get from these products is :

$ 108, 300

$ 128, 300

$ 100,000

None of the above


What is the correct option?

In: Accounting

1.) A monopolist sells its good in two markets denoted by N and S. The demand...

1.) A monopolist sells its good in two markets denoted by N and S. The demand for the good in market N is PN = 100 − QN. The demand for the good in market S is PS = 60 − QS. The marginal cost of producing the good is $20. For your calculations below assume zero fixed costs. a (15). Derive the monopolist’s two-part pricing scheme that allows 1st-degree price discrimination. Provide the fixed fee, the per-unit price, and profit in each market. Calculate also the total welfare across the two markets. b (10). Derive the monopolist’s block-pricing scheme that generates the same profit as the two-part pricing scheme you obtained in (a).

In: Economics

Six-month call options with strike prices of $20 and $26 cost $4 and $2, respectively. You...

  1. Six-month call options with strike prices of $20 and $26 cost $4 and $2, respectively. You plan to create a bull spread call (Buying a call spread) by trading a total of 100 options. Answer the following questions.?

Total amount of credit or debit:

Maximum amount of loss:

Maximum amount of profit:

Break-even stock price of this spread:

  1. Six-month put options with strike prices of $40 and $45 cost $3 and $5, respectively. You plan to create a bull spread put (Selling a put spread) by trading a total of 300 options?

Total amount of credit or debit:

Maximum amount of loss:

Maximum amount of profit:

Break-even stock price of this spread:

​​​​​​​

In: Finance

Western Electric has 35,000 ordinary shares outstanding at a price per share of $47 and a...

Western Electric has 35,000 ordinary shares outstanding at a price per share of $47 and a rate of return of 13.5%. The firm has 5,000 preference shares paying 7% dividend outstanding at a price of $58 a share. The preferred share has a par value of $100. The outstanding bond has a total face value of $450,000 and currently sells for 102% of face. The pre-tax yield-to-maturity on the bond is 8.49%.
Required:
a) Calculate the total market value of the firm.
b) Calculate the capital structure of the firm. (Please round up the result at 3 decimal
places)
c) Calculate the firm's weighted average cost of capital if the tax rate is 30%, assuming a classical tax system.

In: Finance

A chocolate bar manufacturer with stores in most country towns and cities is interested in trying...

A chocolate bar manufacturer with stores in most country towns and cities is interested in trying to estimate how daily sales are influenced by the price of their product. To do this, the company randomly chooses 6 stores in country towns and cities and offers the chocolate bar at different prices.

Using chocolate bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:

City

Price ($) (X)

Sales (Y)

Toowoomba

1.30

100

Broken Hill

1.60

90

Bendigo

1.80

90

Kalgoorlie

2.00

40

Launceston

2.40

38

Port Augusta

2.90

32

   

The value, to three decimal places, of the test statistic to test the hypothesis

H0: β1 = 0

H1: β1 ≠ 0

is

In: Statistics and Probability

Reacher Technology's EBIT was $40 million last year and is not expected to grow (g=0) and...

Reacher Technology's EBIT was $40 million last year and is not expected to grow (g=0) and pays out 100% of earnings as dividends annually. The firm is currently financed with all equity and it has 10 million shares outstanding and is considering recaptizing its equity with debt where new debt would be issued and proceeds used to buyback stock. Show the firm's market value of operations, MV of debt, MV of equity, shares outstanding, and stock price for each level of debt the firm is considering.
EBIT= $       40.00 FCF=
Debt/Value WACC MV MV of Debt MV of Equity #Shares Stock
Price
0% 10
10%
20%
30%
40%
50%
60%
70%

In: Finance

You would like to buy shares of a particular company. The current bid quote is $30.50...

You would like to buy shares of a particular company. The current bid quote is $30.50 and the current ask quote is $30.75. If the stock trade fee is $10 per trade, then you would need $3,085 to buy 100 shares. True or False

If the average PE ratio for the electrical utility industry is 21.5 and earnings per share for Midwest Energy is $2.34, then the current price of Blazer's stock is more than $50.68 but less than $50.94 True or False

If the current price of a stock is $50 per share, next year's dividend is expected to be $2.10 per share and dividends are expected to grow 3.5 percent per year then the required return is more than 7.85 percent. True or False

In: Finance

1.Jones works for a consulting firm and gets remunerated a monthly wage of $500.00. He always...

1.Jones works for a consulting firm and gets remunerated a
monthly wage of $500.00. He always spends all the $500.00 on buying
5kg of potatoes  only which he buys at $100/kg. One day, amidst of
Covid 19 pandemic, the price of potatoes increased to $120/kg. Due
to the snap change in the price, Jones supervisor approached him
and gave him two options to choose from:
i). Reduce Jones wage to $400.00 and supplying him with 30kg of
potatoes at $80/kg monthly.


ii). Increase his wage to $600.00
As a smart student of Principles of Economics and within a page, kindly
advise Jones to make a justified rational choice.

please help with this Economics

In: Economics

Consider the production information below: A. Complete the following table: # of L Output/Week MPL Price...

Consider the production information below:

A. Complete the following table:

# of L

Output/Week

MPL

Price of Output

MRPL

0

0

$10

-

1

100

$10

2

180

$10

3

240

$10

4

280

$10

5

300

$10

6

310

$10

7

315

$10

B. If this firm would have to pay $500 a week, how many workers would the firm hire? Explain how you come up with your answer.

C. If the demand for the products increase such that product price rises to $15 per unit, would the firm hire more/less workers? Explain how you come up with your answer.

In: Economics

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average...

Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost
0 0 25 0
1 4 25 25
2 10 25 50
3 13 25 75
4 15 25 100
5 16 25 125

(a) Complete the blank columns.

(b)    Assume the price of this product equals $10. What’s the profit-maximizing output (q)?  Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit by producing q where P=MC.

(c)    What is the profit?

In: Economics