Answers
The following is embedded in a stock price C) fully reflects all available relevant information.
What is efficient market hypothesis?The efficient market hypothesis (EMH), also referred to as the efficient market theory, is a theory that claims that share prices accurately reflect all available information and that it is difficult to consistently generate alpha.
Equities always trade at their fair value on exchanges, according to the EMH, making it impossible for investors to buy undervalued stocks or sell them for exorbitant prices.
The only way an investor can earn larger returns is by making riskier bets, as it should be impossible to outperform the market as a whole through excellent stock selection or market timing.
The proper question is "According to the efficient market hypothesis, the current price of a financial security A) is the discounted net present value of future interest payments. B) is determined by the highest successful bidder. C) fully reflects all available relevant information. D) is a result of none of the above."
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Related Questions
Artandcraftlocator is an online company that helps people
looking for art and craft tutors to find what they are looking
for. The system requirements are as follows:
1. The system receives tutor information from the tutors and
saves in the tutor information file. This information
includes the type of skills they can teach.
2. The system receives the art student information and saves
it in the student information file.
3. The art student sends a request to the system to view
available tutors and skills. The system retrieves the
information and sends it to the student.
4. The art student can call the manager by phone at any point
to ask for more information.
5. The art student sends a request to the system for the tutor
they wish to work with.
6. The system sends this request to the tutor.
7. The tutor sends the available timings to the system and the
system sends it to the art student.
8. The art student sends the required timing to the system.
9. The system saves the required timing information in the
booking file and the system sends a notification to the
tutor.
10. the art student pays the fees at the bank in advance
11. The art student sends notification to the system when the
classes are finished. The system updates the booking file.
12. The system prints weekly reports to the management to
show class bookings and new art students information.
13. And now:
Add a new external entity of your own to the system, the
external entity sends data to the system (you decide it) and
updates one of the files (you decide what to do here)
Draw the context diagram and level 0 DFD for the above
system.
Answers
Answer:
To add a new external entity to the system described above, you could consider adding an external payment processing system.
This entity could send data to the system about successful payments made by art students, and this data could be used to update the booking file to reflect that the student has paid for their class.
Here is a possible context diagram for the updated system:
[Art and Craft Locator] <---> [Tutor Information File]
[Student Information File]
[Booking File]
[Payment Processing System]
And here is a possible level 0 DFD for the updated system:
[Art and Craft Locator] <--- [Tutor Information]
[Student Information]
[Available Tutors and Skills]
[Request for Tutor]
[Available Timings]
[Required Timing]
[Notification of Class Completion]
[Tutor Information File] <-- [Tutor Information]
[Student Information File] <-- [Student Information]
[Booking File] <-- [Required Timing]
[Notification of Class Completion]
[Payment Processing System] <-- [Payment Information]
You might think about including an external payment processing system in the system described above to introduce a new external entity.
What is a payment processing system?Businesses carry out credit card and debit card transactions through payment processing. Payment gateways send data securely so that funds from a customer's issuing bank can be moved to a merchant's account, while payment processing services speed up card transactions.
Businesses that offer credit or debit card payment choices to their clients want a payment processing service provider that will assist them in crediting the funds to their bank accounts.
To make the payment process efficient and seamless for the merchants and customers, they work together with all parties involved. The people that provide payment processing services carry out the various procedures needed from transaction settlement to authentication.
They ensure that all non-paper money transactions result in the merchants receiving their money in their bank accounts.
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_____is a set of laws about the way a business should behave.
A)Business ethics
B)Company constitution
C)Ethics
D)The Better Business Bureau
Answers
Define option price. Explain why the option price of a policy might differ from the expected surplus generated by the policy.
Answers
Explanation:
Options prices, known as premiums, are composed of the sum of its intrinsic and time value. Intrinsic value is the price difference between the current stock price and the strike price. An option's time value or extrinsic value of an option is the amount of premium above its intrinsic value.
This type of business allows unlimited owners. It does NOT allow shareholders. Owners are NOT personally responsible for business liabilities
Question options:
C-Corporation
S-Corporation
Limited Liability Company
Sole Proprietorship
Answers
Answer:
I think its LLC not sure
Explanation:
Uhhh i tried?
Which of the following is a disadvantage of virtual teams?
O a. Limited market opportunities
O b. Poor leadership
O c. Decreased productivity
Od. Inefficient knowledge transfer
Memele
Answers
The disadvantage of virtual teams from the options that we have here would be Decreased productivity.
What is meant by virtual teams?This is the term that is used to refer to the group of workers that are known to communicate with themselves and also work together over a network or through the internet.
These people do not work under the traditional work environment. Tasks could be completed from the comfort of their homes. Hence we can say that the disadvantage of virtual teams from the options that we have here would be Decreased productivity.
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A document given to a customer by the seller requesting payment for goods bought on credit is known as an:
Answers
Answer:
an Invoice
Explanation:
Theoretically, how should a business choose between borrowing and equity in its capital structure?
Answers
A business needs to choose between the financing options available, generally there are two options available to a company that is equity and borrowing. A company needs to choose a perfect ratio between the two, Ideal is 40% borrowing and 60% Equity.
What is Borrowing or Debt?Borrowing the financing option that a company have, this is also known as the debt, in a debt the company asks for loan from financial institutions who provide loan to the company at a certain percentage of interest that the company will have to bear as a finance cost, the business will pay this cost to the debtor every year as per the agreed terms.
Ideally a company should never cross 50% of borrowing of the total capital, this makes the investment too risky and the debtors will then as a result increase the interest percentage.
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Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 385 per run 440 runs Clerical 40 per page 2,800 pages typed Resources supplied Setups $ 172,750 Clerical 120,700 Sales revenue totaled $330,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
Answers
Answer:
Conlon Enterprises
a. Traditional Income Statement
Sales revenue $330,000
Setup costs 169,400
Clerical costs 112,000
Operating profit $48,600
b. Activity-based Income Statement:
Resources Resources Unused Resource Total
Supplied Used Capacity
Sales revenue $330,000
Costs:
Volume-related Setups $172,750 $169,400 $3,350
Batch-related Clerical 120,700 112,000 8,700
Total costs $293,450 $281,400 $12,050 281,400
Operating profit $48,600
Explanation:
a) Data and Calculations:
Cost Driver Rate Cost Driver Volume Total Resources used
Resources used
Setups $ 385 per run 440 runs $169,400
Clerical 40 per page 2,800 pages typed $112,000
Resources supplied
Setups $ 172,750
Clerical 120,700
Sales revenue totaled $330,000
according to our understanding of integrated marketing communications, which of the following is not an example of one of the 10 rules of integration?
Answers
According to our understanding of integrated marketing communications, of the following is not an example of one of the 10 rules of integration start with a large budget.
How ought a novice to establish a budget?Set some objectives.
Establish your income.
Establish your costs.
Establish a budget.
Initially, pay yourself!
Be cautious when using credit cards.
Regularly check back.
How do you begin a strict spending plan?First, figure out your net income. Your net income is the basis of an efficient budget.
Next, keep tabs on your spending.
Step 3 is to make practical goals.
Make a plan in step four.
5. Modify your expenditures to keep inside your spending limit.
Step 6: Regularly review your spending plan.
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Explain project teams
Answers
Answer:
A project team is a team whose members usually[quantify] belong to different groups, have different functions and are assigned by the project manager to activities for the same project. A team can be divided[by whom?] into sub-teams according to need. Usually project teams are only used[by whom?] for a defined period of time. They are disbanded[by whom?] after the project is deemed[by whom?] complete. Due to the nature of the specific formation and disbandment, project teams are usually in organizations.
Explanation:
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Seminole Company began the year with 23,000 units of product in its January 1 inventory costing $15 each. It made four purchases of its product during the year as follows. The company uses a periodic inventory system. On December 31, a physical count reveals that 40,000 units of its product remain in inventory.
Answers
The total cost of the units available for sale during the year equals to $3,150,000.
What is total cost of units?Basically, an unit cost means the total expenditure incurred by a company to produce, store and sell one unit of a particular product or service. Its includes all of the fixed and variable costs associated with the production of a good or service.
The computation of the number and total cost of units available for sale are as follows:
= 23,000 units in beginning inventory * $15
= $345,000
= 30,000 units purchased * $18
= $540,000
= 39,000 units purchased * $20
= $780,000
= 23,000 units purchased * $25
= $575,000
= 35,000 units purchased * $26
= $910,000
Therefore, for the 150,000 units, the cost available for sale equals to the amount of $3,150,000.
Missing wordings "Mar. 730,000 units at $18 each, May 2,539,000 units at $20 each, Aug. 123,000 units at $25 each, Nov. 1,035,000 units at $26 each. Requirement: Compute the number and total cost of the units available for sale during the year".
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One column of numbers consists of 33, 58, and 17. When the digits of the
numbers are added together, the result is 3+3+5+8+1+7=27, and when
the digits of 27 are then added together, the end result is 2 + 7 = 9. If the
same process is performed on the numbers in a second column, what can be
concluded?
OA. If the end result from the second column is also 9, then the sum of
the numbers in the first column is not equal to the sum of the
numbers in the second column.
OB. If the end result from the second column is not 9, then the sum of
the numbers in the first column is not equal to the sum of the
numbers in the second column.
OC. If the end result from the second column is not 9, then the sum of
the numbers in the first column is equal to the sum of the
numbers in the second column.
D. If the end result from the second column is also 9, then the sum of
the numbers in the first column is equal to the sum of the numbers
in the second column.
Answers
This is because the process described (adding the digits of the numbers and then adding the digits of the result until a single digit is obtained) is essentially finding the digital root of the sum of the numbers in each column. If the digital roots of the two columns are different, then the sum of the numbers in the first column cannot be equal to the sum of the numbers in the second column.
Drag the tiles to the correct boxes to complete the pairs.
Match the generations to the marketing scenarios they relate to.
Baby Boomer generation
Pluralist generation
Millennials
Generation X
Answers
Marketing is one of the essential strategies for companies. Different generations have unique characteristics and interests. Therefore, companies should use a distinct approach to attract the specific generation they target.
Baby Boomer Generation - Traditional AdvertisingBaby Boomers refer to people born between 1946 and 1964. They are often categorized as one of the most challenging generations to market to.
Boomers grew up with television, newspapers, magazines, and radio, so traditional advertising like print ads and commercials will reach this group effectively. They appreciate loyalty and quality. They tend to be more conservative, so it is essential to position your product as reliable and safe.
Pluralist Generation - Personalized AdvertisingThe Pluralist Generation refers to individuals born between 1965 and 1976. They grew up in a time of global change.
They are technologically adept, and therefore businesses should focus on digital and social media advertising to capture their attention. Personalized marketing campaigns will work best with this generation. They prioritize self-expression, individualism, and work-life balance. Companies should ensure their products align with these values to capture the Pluralist's attention.
Generation X - Cause-related AdvertisingGeneration X refers to individuals born between 1977 and 1995. They value authenticity and social responsibility, which companies should consider when marketing. They are often interested in making a positive impact on society.
Therefore, it is essential to focus on cause-related marketing. Ads should not feel like ads to Generation X. They appreciate edgy and humorous campaigns, so it is crucial to think outside the box.
Millennials - User-generated AdvertisingMillennials refer to individuals born between 1981 and 1996. They are the most significant generation in the market today.
Millennials prefer to engage in user-generated advertising. They rely on user-generated content (UGC) like ratings, reviews, social media feedback, etc., to determine the value of a product. Therefore, businesses should focus on building a strong social media presence.
They appreciate transparency, community, and convenience, so businesses should prioritize online reviews, influencer marketing, and personalized messaging.
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What are some large-scale economic shifts that have created our present service economy
Answers
The capitalist system in the United States is one of the large-scale economic shifts that have created our present service economy
What is meant by an economic shift?Economic change, which can be characterized as a change in the economy's structure, policies, or growth, is one of the external factors that influence company decision-making.
Every country's economy has expansionary and contractionary eras. The levels of employment, productivity, and the overall demand and supply of the country's goods and services are what lead to these changes. These adjustments cause short-term expansionary and deflationary episodes.
An economic system known as a service economy is one in which the provision of services, as opposed to the production of products, is the primary activity. Road construction, medical treatment, food, lodging, and other professional services are some of these services.
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Two new software projects are proposed to a young, start-up company. The Alpha project will cost $530,000 to develop and is expected to have annual net cash flow of $60,000. The Beta project will cost $170,000 to develop and is expected to have annual net cash flow of $18,000. The company is very concerned about their cash flow. Calculate the payback period for each project. Which project is better from a cash flow standpoint
Answers
Answer: See Explanation
Explanation:
The payback period for both projects would be calculated as:
Alpha Project
Cost = $530,000
Annual net cash flow = $60,000
Payback period = Cash / Annual net cash flow
= $530,000 / $60,000
= 8.83
Beta Project
Cost = $170,000
Annual net cash flow = $18,000
Payback period = Cash / Annual net cash flow
= $170,000 / $18,000
= 9.4
We can see that Alpha Project is better as the payback period is lesser than Beta project
A Market share is usually stated as a
Answers
Answer:
stock
Explanation:
a stock is a a share of a company
According to the above material, there exist large differences between economic growth rate using traditional expenditure approach and the satellite night-light data. How do you evaluate the night-light data method? and can you identify several reasons why there exists such differences?
Answers
The use of satellite night-light data as a method to evaluate economic growth has both strengths and limitations. Reasons for Differences between Traditional Expenditure Approach and Night-light Data: Informal Economy, Data Limitations, Urbanization Bias and Structural Changes.
Here is an evaluation of the night-light data method and several reasons for the differences observed between the traditional expenditure approach and the night-light data:
Evaluation of the Night-light Data Method:
Objective and Timely: Satellite night-light data provides an objective and timely measure of economic activity. Wide Coverage: Night-light data can cover large geographical areas, including remote and inaccessible regions. Granularity: The data can be analyzed at a fine-grained level, allowing for detailed spatial analysis of economic patterns. This can help identify pockets of growth and disparities within regions.Reasons for Differences between Traditional Expenditure Approach and Night-light Data:
Informal Economy: The traditional expenditure approach relies on official economic data, which may not fully capture the informal sector. Data Limitations: Night-light data has its limitations. It primarily measures economic activity related to lighting, which may not capture other dimensions of economic growth such as services or knowledge-based industries. Urbanization Bias: Night-light data tends to be more representative of urban areas with higher population density and greater access to electricity. Structural Changes: The traditional expenditure approach focuses on consumption and investment, while night-light data primarily captures the energy consumption associated with lighting.For such more question on economic:
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Explain in two ways how your community can support the 16days of activism
Answers
Hosting events and creating social media campaigns are just two ways that your community can support the 16 days of activism campaign. By coming together and taking action, we can create a safer.
The 16 days of activism is a global campaign that aims to raise awareness about gender-based violence and empower individuals to take action against it.
Hosting Events: One way to support the 16 days of activism is by hosting events in your community. These events can range from panel discussions, workshops, film screenings, and rallies.
By hosting these events, you can bring together members of your community to discuss the issue of gender-based violence, share their experiences, and brainstorm ways to address it. Additionally, hosting events can help to raise awareness about the campaign and encourage more people to get involved.
Social Media Campaigns: Another way to support the 16 days of activism is by creating social media campaigns. Social media has become a powerful tool for advocacy, and you can use it to raise awareness about gender-based violence and the 16 days of activism campaign.
You can create posts that highlight the importance of the campaign, share stories of survivors of gender-based violence, and encourage others to take action. By creating social media campaigns, you can reach a wider audience and inspire more people to get involved in the fight against gender-based violence.
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Question 2 of 10
In which situation would a person pay a higher property tax than he or she did
the year before?
A. The amount the person spent on electronics increased.
B. The number of dependents the person had increased.
C. The value of the person's home increased.
D. The salary the person earned increased.
Answers
Answer:
. ' .
_________________________________________
, :)
Answer:
c
Explanation:
the value of the persons home increased
Place each item in the correct category
perfect competition versus not perfect competition
Answers
The table below shows Lanark's production possibilities.
A B C D E F
Wheat 0 180 315 405 450 468
Cars 190 181 163 127 73 0
a. If Lanark is producing 145 cars, it can produce approximately
wheat.
b. If Lanark is currently producing combination C, the cost of 90 more wheat is
(Click to select)
.
c. If Lanark is currently producing combination D, the approximate per unit cost of an additional car is
(Click to select)
. If necessary, round your answers to 1 decimal place. Remember to round 0.05 up to 0.10.
Answers
If Lanark is currently generating 145 buses, it can generate about 180 units of wheat. .
b. The cost of 90 further wheat is 90.
c. The approximate per unit cost of an fresh auto is 54.
To determine the approximate quantum of wheat Lanark can produce if it's presently producing 145 buses , we need to find the matching value in the" Wheat" column. Grounded on the given table, we can see that the values in the" buses" column drop from left to right. thus, we need to find the combination where the number of buses is closest to 145, which is combination B. In combination B, Lanark can produce roughly 180 units of wheat.
We can find the cost of 90 further wheat by comparing the wheat values between combinations C and D, If Lanark is presently producing combination C. The wheat value in combination C is 315, and the wheat value in combination D is 405.
The difference between these two values represents the fresh wheat produced when moving from combination C to combination D. In this case, the difference is 405- 315 = 90. thus, the cost of 90 further wheat is the difference between the wheat values in combination C and D, which is 90.
we can determine the approximate per unit cost of an fresh auto by comparing the auto values between combinations D and E, If Lanark is presently producing combination D. The auto value in combination D is 127, and the auto value in combination E is 73.
The difference between these two values represents the drop in auto product when moving from combination D to combination E. In this case, the difference is 127- 73 = 54.
thus, the approximate per unit cost of an fresh auto is the difference between the auto values in combination D and E, divided by the drop in auto product, which is 54/ 1 = 54.
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Consider each situation for Kathy, Inc. below independently.
Kathy, Inc. issued 10,000 shares of its $25 par common stock (current fair value of common is $35 per share) for a large tract of land. The land was appraised at $400,000.
Kathy already had 500,000 shares of common stock outstanding.
Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20.
Required:
a. At what amount should land be recorded?
b. What is the total amount that should be recorded for additional paid-in capital from the second situation?
Answers
Answer:
Kathy, inc.
a. The land should be recorded initially at $250,000. This is what it caused the company to acquire it in exchange for common stock.
b. The total amount that should be recorded for additional paid-in capital from the second situation is:
= $4,000.
Explanation:
Data and Calculations
a. Common stock issued for land = 10,000
Par value of common stock = $25
Market value of common stock = $35
Appraised value of land = $400,000
Value of land = $250,000 ($25 * 10,000)
b. Outstanding common stock = 500,000 shares
New issue of 2,000 $10 par Class A common stock at $12 = $24,000
New issue of 100 shares of no-par Class B common stock at $20 = $2,000
Total amount received = $26,000
Common stock value:
2,000 at $10 = $20,000
Additional paid-in capital = $4,000 ($24,000 - $20,000)
Find a recent news article displaying an employee getting in trouble for lack of integrity
Answers
Answer:
boerdddddddd
Explanation:
In a recent article in the newspaper, a research employee in a small scale business caught in a trouble because he made a wrong decision regarding the launch of a new product.
What is a business?
A business can be referred to as an organization or enterprising entity that engages in professional, commercial or industrial activities. There are different types of businesses like sole proprietorships, partnerships, corporations, and more.
The businesses are basically work for profit motive. Businesses can be small-scale or large-scale. Some of the biggest businesses in the world are Amazon and Walmart.
There are different types of partners in a business. The persons who owns the shares of the company is known as shareholder. The partner who can lose only what he or she has invested in a business is the general manager.
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Stephen and Martha have spent months looking for their dream home. One day they saw it and fell in love with everything about the house, and they asked the realtor to draw up a purchase agreement, which they then signed. After signing the papers, they asked the realtor whether the house was in good shape. The realtor said it was. When the couple moved into the house, they realized that the basement had serious water problems and that the roof leaked. They now want to sue the realtor. What tort should they consider? If they sue the realtor for this tort, will they win? Why or why not? Explain.
Answers
Stephen and Martha can sue the realtor for the unethical behavior, by filing the claim with the association.
What claim can be file by the buyers against of the realtors for the unethical behavior?If buyer is handover with the property by giving the false statements by the realtors, then a complaint can be filled within 180 days from the day, it took place.
If complaint would be find valid by the grievance committee, the case will go to the hearing committee where the buyer can prove his claim by telling how Code of Ethics was violated.
If realtor found to be guilty, then he could be charged with the fine.
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On june 5, x-mart purchased $400 of merchandise with terms of 2/10,n/30. If payment is made on june 11, calculate the purchase discount that may be taken by x-mart.
Answers
Based on the amount that X-Mart purchased, and the date they paid, the discount taken would be $8.
How much discount would X-Mart get?The terms are 2/10,n/30 which means that if X-Mart pays within 10 days, they would get a 2% discount.
They paid on the 11th which is 6 days later so they will get the 2% discount of:
= 2% x 400
= $8
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Is accounting conservatism appropriate
Answers
Answer:
Yes, accounting conservatism is appropriate because it makes firms more cautious when registering and reporting financial information. This increased cautiousness is likely to make accounting information more accurate.
Under the principle of accounting conservatism, losses are registered when they are found to be probable, while earnings are only added when they have been fully realized. As a result, this principle results in prudent and more trustworthy financial information for all stakeholders.
In this exercise you will be evaluating the economic condition of the country and making decisions in order to keep the economy level. The amount of money in circulation has a tremendous effect on the economy and inflation. Imagine if you found $100,000 in cash floating around your front yard. What would you do with it
Answers
Shelly could increase the discounting rate to help stabilize the economy. Shelley is the Chairman of the European Reserve. She is in responsible for making Fed choices that will affect the country's economy, and she must base her decisions on current market data.
What is monetary policy?Monetary policy in the United States comprises the Federal Reserve's activities and communications in order to foster optimum employment, steady prices, and moderate long-term interests rates—the three macroeconomic goals that the Congress has authorized the Federal Reserve to pursue.
The president has made repeated public declarations claiming that the business has been performing well in recent years and that the dollar has being strong. Because the president is unwilling to use fiscal strategy to slow the economy, it is up to you to employ monetary policy.
As a result, the increase the discounting rate to help stabilize the economy.
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How is a debit card similar to an ATM card each is only?
Answers
A debit card is identical to an ATM card because it may be used to withdraw cash. It is also linked to a checking or savings account, so any withdrawals made will be immediately reflected in the account.
What sets an ATM card apart from a debit or credit card?A credit or debit card gives you the choice of making POS and online purchases, whereas an ATM card only enables you to make cash withdrawals from ATMs. Instead of carrying cash, a debit or credit card holder can make purchases simply using their card.
What distinguishes a debit card from a credit card, and how are they comparable?Debit cards frequently take money out of a checking account, whereas credit cards charge purchases using a line of credit. Whenever you make a transaction with a debit card, you are spending your own money. Whenever you use a credit card, you are borrowing money from the card's issuer, who you may later have to pay back with interest.
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Adams Furniture receives a special order for 10 sofas for a special price of $6,400. The direct materials and direct labor for each sofa are $160. In addition, supervision and other fixed overhead costs average $180 per sofa.
Required:
a1. What is the impact on operating income from accepting the special order?
a2. Based solely on a short-term financial analysis, should Adams accept the special order?
b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $750?
b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity?
Answers
The operating income from special order is $1400 and the opportunity cost per unit for lost sales to regular customers is $430.
What is the impact of the special order on the operating income?a1. To determine the impact on operating income from accepting the special order, we need to calculate the total cost per sofa and compare it to the special price of $6,400 for 10 sofas.
Total cost per sofa = Direct materials + Direct labor + Fixed overhead
Total cost per sofa = $160 + $160 + $180
Total cost per sofa = $500
Revenue from special order = $6,400
Operating income from special order = Revenue - Total cost
Operating income from special order = $6,400 - ($500 x 10)
Operating income from special order = $1,400
Therefore, the impact on operating income from accepting the special order is an increase of $1,400.
a2. Based solely on a short-term financial analysis, Adams should accept the special order since it will result in an increase in operating income.
b1. If Adams is currently operating at full capacity, accepting the special order will require the company to forgo regular sales to its customers. The opportunity cost per unit for lost sales to regular customers can be calculated as follows:
Opportunity cost per unit = Selling price per unit - Total variable cost per unit
Opportunity cost per unit = $750 - $320
Opportunity cost per unit = $430
Therefore, the opportunity cost per unit for lost sales to regular customers is $430.
b2. Based solely on a short-term financial analysis, whether Adams should accept the special order if it is currently operating at full capacity depends on whether the contribution margin from the special order is greater than the opportunity cost per unit for lost sales to regular customers.
Contribution margin per unit = Selling price per unit - Total variable cost per unit
Contribution margin per unit = $6,400 / 10 - $320
Contribution margin per unit = $640 - $320
Contribution margin per unit = $320
Since the contribution margin per unit of $320 is greater than the opportunity cost per unit for lost sales to regular customers of $430, Adams should accept the special order. However, it's worth noting that accepting the special order could have long-term consequences on the company's relationships with its regular customers.
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Headers and footers are handling instructions. True False
Answers
Answer:
False
Explanation:
Answer:
its true
Explanation:
edg got it correct