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1 year ago

Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

Business

1 answer:

HACTEHA [7]1 year ago

5 0

Answer:

- ($51,306)

Explanation:

Given that,

Loss of Contribution = $75,000

Fixed costs will be eliminated by dropping the CUP line = $23,694

Net loss on dropping cup line:

= Loss of contribution - Gain on fixed costs on dropping cup line

= $75,000 - $23,694

= - ($51,306)

Therefore, the net effect on dropping the cup line on net income is $(51,606).

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A country's ability or intention to meet its financial obligations determines its ________. political risk economic risk legal r

MArishka [77]

A country's ability to meet its financial obligations is the main determinant of its "economic risk". Whether a country will be able to repay debts which it takes on, such as in the form of bond issues, is a key driver of the willingness of investors to make capital contributions to a country, and the return that they expect in exchange for assuming that risk.

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2 years ago

Assume the current Treasury yield curve shows that the spot rates for six months, one year, and one and a half years are 1 %1%

Ludmilka [50]

Answer:

present value of bond = $1042.96

Explanation:

given data

spot rates for six months = 1%

spot rates for one and = 1.1%

spot rates for one and half years = 1.3%

price = $1000

coupon bond = 4.25%

time = 6 month

solution

we get here first price on bond paid that is

coupon paid = $1000 × 4.25 × 0.5 = $21.25

we get here present value of 6 month and 1 year and 1 and half year

present value = $\frac{coupon\ payment }{(1+\frac{spot \ rate}{2})^t}$ ..............1

present value of 6 month = $\frac{21.25}{(1+\frac{0.1}{2})^1}$ = 20.23

present value of 1 year = $\frac{21.25}{(1+\frac{0.011}{2})^2}$ = 21.01

present value of 1 year and half year = $\frac{21.25}{(1+\frac{0.013}{2})^2}$ = 20.97

and

now we get present value of par value in 1 and half year

present value of par value in 1 and half year = $\frac{par\ value}{(1+\frac{spot rate}{2})^3}$

present value of par value in 1 and half year = $\frac{1000}{(1+\frac{0.013}{2})^3}$

present value of par value in 1 and half year = 980.75

present value of bond will be as

present value of bond = 20.23 + 21.01 + 20.97 + 980.75

present value of bond = $1042.96

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1 year ago

When Coca-Cola carries a different price depending on whether the consumer purchases it in a fine restaurant, a fast-food restau

Mashcka [7]

Answer:

The correct answer is Channel pricing.

Explanation:

In the industry, the Channel Pricing is used with the purpose of setting the prices depending on the means of delivery of goods or services. Coca-cola used the channel pricing to offer different prices depending on the location the people usually buy the products.

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2 years ago

Which economic question is addressed by targeting teenage buyers?

AlexFokin [52]

"For whom to produce?" is the one economic question among the following choices given in the question that is addressed by targeting teenage buyers. The correct option among all the options that are given in the question is the first option. I hope that this is the answer that has actually come to your desired help.

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2 years ago

Crimson Corp. was organized as a calendar-year corporation in January, Year 1, incurring $51,000 in qualified organizational exp

Lelechka [254]

Answer:

Total deductible organization expenses is $ 6,611

Explanation:

Upto $ 5000 in qualifying organization expenses are deductible in the year they are incurred , with the amount reduced by the amount by which total organizational expenses exceed $50,000. With a total of $51,000 Crimson corp could deduct $ 4000 .

In addition , the remaining $ 47,000 is amortized over 15 years or 180 months , begining in the period in which the entity commences operations. Since crimson began operaions in March 2016 , amortization would be for 10 months ( march 2016 - december 2016 )

Amoritzation for march 2016 to december 2016 = 10 / 180 * $47,000

= $2611

Total deductible organization expenses = $4,000 + $ 2,611

= $ 6,611

3 0

1 year ago