cost allocation problems involve transfer pricing problems. In this problem, which at first appears to be a cost allocation question, is really a transfer pricing problem. In this problem, the formula being used consists of monthly expenditures for both fixe and variable costs divided by actual miles flown. Question b: As passenger miles flown increases, what happens to the cost per passenger mile? Answer: With the increase in the number of passenger miles, the average price charged falls.
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developing countries led to a huge problem. As one of the nation's main commodities, oil and gas has a very strong impact on the Malaysian economy. Our Oil and Gas team with its industry professionals and worldwide capabilities is ideally placed to help companies
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14 Option Sensitivities and Option Hedging Answers to Questions and Problems 1. Consider Call A, with: X $70; r 0.06; T t 90 days; DELTA, GAMMA, THETA, VEGA, and RHO for this call. c DELTA GAMMA THETA VEGA RHO $1.82 .2735 .0279 8.9173 9.9144 3.5985 0.4; and S $60. Compute the price, 0.4; and S $60. Compute the price, 2. Consider Put A, with: X $70; r 0.06; T t 90 days; DELTA, GAMMA, THETA, VEGA, and RHO for this put. p DELTA GAMMA THETA VEGA RHO $10.79 .7265 .0279 4.7790 9.9144 13.4083
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whatever that want and they are single seller. With a change in the price, the quantity demanded also alters. Owner, himself/herself is a firm as well as industry. Being the entire industry, the monopolist’s supply is big enough to affect prices. By decreasing output, the monopolist can force the price up. Increasing output will drive it down. The demand curve faced by a purely competitive firm is horizontal, perfectly elastic. Price is given and fixed and the firm faces a multitude of competitors,
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financial statement Treasurer: analyzes and makes decisions using financial statements Assumptions: 1. As financial manager 2. Working in a publicly held corporation 3. Efficient market 1. As financial manager • We should think and solve problems like financial managers. • First, we need to understand their goal: maximize shareholder’s wealth • What represents shareholder’s wealth? Stock Prize (prize of the shares of the firm) Difference between profit maximization and shareholder’s
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demand curve depending on whose drug they would prefer more. Also the price, if one drug seller sells his drugs at a higher price of course the consumer is going to go to the cheaper drug seller to get more for the price. The consumers income will also shift the demand curve depending on how much money the consumer is able to waste on drugs at the moment. Also the expectations of future prices if the consumer hears that the drug prices are going to rise tomorrow well then he will buy much more today causing
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Case study : How IKEA adapted its strategies to expand & become profitable in China Executive Summary: IKEA is known globally for its low prices and innovatively designed furniture. In China, however, it faced peculiar problems. Its low-price strategy created confusion among aspirational Chinese consumers while local competitors copied its designs. This case study analyses how IKEA adapted its strategies to expand and become profitable in China. It also assesses some lessons the company learnt
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Discussion Questions: “The Use of Knowledge in Society”, Hayek, Friedrich A. 1. “The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form, but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess (H.3)” a. What does Hayek mean by a “rational economic order”?
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Economics Jessica Florian BUS640 Managerial Economics Prof. Hong Zhao July 30, 2012 Problems Chapter 1 a) What is the total explicit, total implicit, and total Economic costs in 2010. Explicit costs are defined as monetary opportunity costs. Explicit costs would be the accounting costs listed =$628,000. Implicit costs are defined as nonmonetary opportunity costs. = $15,000 (this is potential gain in stocks) + 175,000
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4/26/05 ISQA 458 Unifine Richardson Case The problem facing Unifine Richardson is that Harrington Honey, its main honey supplier will be out of Chinese honey inventory by May 17, 2002 because of CFIA inspection issues. For now, Unifine will have to look for alternative sources for honey until the Chinese suppliers figure out a way to detect and reject contaminated honey. Its current cost for 50-50 blend of Chinese and Canadian honey is $1.08 Canadian dollars per pound. Harrington Honey
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