Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives reveneues with a
A) What is the expected profit of granting credit? (don't round intermediate calculations. Round answer to 2 decimals)
B) What is the break-even probability of collection?
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- When the delivery price of the long forward contract is $65 and the actual price at the time of delivery is $65, here is a profit (loss) of $ _______. (Enter a negative number for a loss and round to the nearest dollar.)arrow_forwardAt Blossom Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player that normally sells for $54. A foreign wholesaler offers to buy 4,520 units at $26 each. Blossom Electronics will incur special shipping costs of $1 per unit. Assuming that Blossom Electronics has excess operating capacity, indicate the net income (loss) Blossom Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Revenues Costs-Variable manufacturing Shipping Net income The special order should be Reject Order $ $ Accept Order Net Income Increase (Decrease) $ $ $ $arrow_forwardWhat is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5, 400, 400 should be entered as 5, 400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Nardin Outfitters has a capacity to produce 18, 500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $ 1,550 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs $ 570 Fixed manufacturing costs 155 Variable selling and administrative costs 145 Fixed selling and administrative costs 115 Total costs $ 985 The company has received a special order for 1,800 tents at a price of $730 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $58 per tent. The special…arrow_forward
- Please help me to solve this problemarrow_forwardWhen the delivery price of the long forward contract is $65 and the actual price at the time of delivery is $55, there is a profit (loss) of $_________. ( a negative number for a loss and round to the nearest dollar.)arrow_forwardAt Sandhill Electronics, it costs $31 per unit ($20 variable and $11 fixed) to make an MP3 player that normally sells for $49. A foreign wholesaler offers to buy 3,720 units at $28 each. Sandhill Electronics will incur special shipping costs of $3 per unit. Assuming that Sandhill Electronics has excess operating capacity, indicate the net income (loss) Sandhill Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income $ $ The special order should be accepted Reject Order i i $ $ Accept Order 104,160 (74,400) i (3,720) 26,040 $ $ Net Income Increase (Decrease) 104,160 (74,400) (3,720) 26,040arrow_forward
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