Answer:
Farm worker
Explanation:
Seasonal unemployment occurs due to a decrease in labor demand at particular times of the year. Some industries experience increased activities during specific seasons. Hotels and restaurants may experience a boom in holiday seasons, while Ski business may be closed during summer.
The farming business is seasonal. During winter, nothing much happens. Workers in this period are likely to be unemployed.
Answer:
$179,950
Explanation:
For determining the overhead applied first we have to find the predetermined overhead rate based on the estimated cost which is shown below:
Predetermined overhead rate is
= Estimated overhead cost ÷ estimated direct labor cost
= $174,000 ÷ $87,000
= $2
Now the applied overhead is
= Predetermined overhead rate × actual direct labor cost
= $2 × $89,975
= $179,950
We simply applied the above formula so that the overhead applied could come
Answer:
d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.
Explanation:
a)The opportunity cost of 1 lb. of bananas is 4 lbs. of coffee for Oscar.
In order to produce 64 pounds of banana, Oscar has to give up producing 16 pounds of coffee, his opportunity cost is:
The statement is false.
b)Oscar has absolute advantage in the production of coffee.
Julia has a higher production capacity for coffee (20 pounds to 16 pounds) and therefore has the absolute advantage.
The statement is false.
c)Julia has comparative advantage in the production of bananas.
Julia has a higher opportunity cost for producing a pound of bananas (0.5 pounds of coffee to 0.25 pounds of coffee) and therefore does not have the comparative advantage.
The statement is false.
d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.
In order to produce 16 pounds of coffee, Oscar has to give up producing 64 pounds of banana, his opportunity cost is:
The statement is true.
Answer:
Shandra Corporation
The amount which Shandra Corporation will report as foreign exchange gain in net income for the quarter ended June 30 is:
$5,240
Explanation:
Price of goods = 131,000 pounds
Delivery and payment date = April 20
On February 20, the spot rate for call option on 131,000 pounds = $1.37
Cost of the option = $1,310
The spot rate on April 20 = $1.42
The foreign exchange gain or loss to be reported in net income for the quarter ended June 30 = $0.05 ($1.42 - $1.37
Total gain = ($0.05 * 131,000) - $1,310
= $6,550 - $1,310
= $5,240
b) With this call option, which gives Shandra the right to buy the underlying asset, Shandra hedges his contract to purchase goods from a foreign supplier, and therefore, profits when the spot rate increases from $1.37 on February 20 to $1.42 on April 20. The profit made is reduced by the cost of the call option.
Answer:
Option (d) is correct.
Explanation:
P0 = D1 ÷ (ke - g)
Where,
P0 is the price = ?
Currently dividend paid, D0 = $1.62 a share
ke is the required return = 15.70%
g is the growth rate = 2.10%
D1 is the dividend at end of year:
= D0 × (1 + g)
= $1.62 × (1 + 0.021)
= $1.62 × 1.021
= $1.65402
Therefore,
P0 = 1.65402 ÷ (15.7% - 2.1%)
= 1.65402 ÷ (13.6%)
= $12.16
Therefore, the price of one share of this stock is $12.16
