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Answer: The amount invested in the dogwood tree was $5000, while $35000 was invested in the red maple tree.
We arrive at the answer as follows:
Let the proportion of dogwood trees be x.
Then the proportion of red maple trees in the nursery will be 1-x, since there are only two types of trees in the nursery.
We use the following formula to find the proportion dogwood and maple trees in the nursery:
Solving for x we get
We can find the proportion of maple trees as follows:
Since we have the proportions, we can easily find the amount invested in type of tree as follows:
Answer:
$175,000
Explanation:
Given:
Per unit cost of manufacturing = $4.50
Normal production rate = 50,000 units per year
Direct materials and direct labor costs = $2.50 per unit
Incremental overhead costs = $50,000 per year
Allocated fixed overhead costs = $50,000 per year
Quoted price = $3.70 per unit
Now,
total relevant cost per unit
= Direct materials and direct labor costs + (allocated fixed overhead costs ÷ Number of units to be made )
= $2.50 +
= $2.50 + $1
= $3.50
Therefore,
Total relevant cost of making 50000 units
= $3.5 × 50,000
= $175,000
Answer:
Check explanation.
Explanation:
A call option hedge ratio shows how an option price with respect to price changes in the underlying stock. A call option hedge ratio is used in determining the number of shares of stocks to hedge an option position.
We have Call option with the following characteristics:
X = 50; T=1 year; standard deviation = 20%; T-bill rate = 3%.
Hedge ratio = N(d1) from the Black-Scholes equation
For S=$45, d1 = -0.0268 and N(d1) =0.489309.
For S = $50, d1 = 0.5 and N(d1) = 0.6915.
If S = $55, d1 = 0.97655 and N(d1) = 0.8356.
From the above values obtained, it means that the price of the call option becomes more sensitive to changes in the price of the stock at higher stock prices.