Answer:
$81 approx
Explanation:
Contribution margin refers to sales receipts in excess of variable costs incurred. This represents contribution from a product earned which is after variable costs have been incurred.
<u>Product A</u>
Selling price per unit = $88
Variable cost per unit = $38
Contribution per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $88 - $38 = $50
Similarly, for <u>product B</u>,
Contribution margin per unit = $143 - $47= $96
<u>Products Weights Contribution Weighted contribution</u>
A 0.32 50 16
B <u>0.68</u> 96 <u>65.28</u>
1.00 81.28
Hence, weighted average contribution margin is $81.28 or $81 approx
The process of buying an underpriced security and selling an equivalent overpriced security until the prices converge is known as arbitrage. This statement is true.
<h3>What Is Arbitrage?</h3>
The arbitrage approach, used in foreign exchange trading, allows investors to lock in profits by simultaneously buying and selling the same security, good, or currency on two different marketplaces. By using this strategy, traders can profit from the disparities in pricing for the same asset across the two different regions that are represented on each side of the trade.
Arbitrage is the practice of purchasing an underpriced security and selling an equivalently-priced asset until the prices converge. Trading on illegal insider knowledge may result in abnormal profits even if the efficient market theory is accurate in a semi-strong sense.
To know more about Arbitrage, refer:
brainly.com/question/16178885
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Answer:
The value that Perfection records in it's books on Jan 2, 2021 related to its investment in Satisfactory is:
$486,000.
Explanation:
a) Data and Calculations:
Net asset value of Satisfactory = $1,944,000 on acquisition date
Stake purchased by Perfection = 25%
25% of the net asset value of Satisfactory = $486,000 ($1,944,000 * 25%)
b) There is no goodwill arising from the investment in Satisfactory. The equity method will be used to account for the investment in the Satisfactory. The Equity Method involves recording the investment in an associated company like Satisfactory when Perfection's ownership interest in Satisfactory is valued at 20–50% of the net assets.
