Suppose that in the year 2015, oceanaire, inc. planned to produce 550,000 units of its lightweight scuba tanks. of the 550,000 it planned to produce, a total of 25,000 units would be added to the inventory at its new plant in arizona. also assume that these units have been selling at a price of $225 each and that the price has been constant over time. suppose further that this year the firm built a new plant for $6 million and acquired $3.0 million worth of equipment. it had no other investment projects, and to avoid complications, assume no depreciation.
now suppose that at the end of the year, oceanaire had produced 550,000 units but had only sold 500,000 units and that inventories now contained 50,000 units more than thesuppose that in the year 2015, oceanaire, inc. planned to produce 550,000 units of its lightweight scuba tanks. of the 550,000 it planned to produce, a total of 25,000 units would be added to the inventory at its new plant in arizona. also assume that these units have been selling at a price of $225 each and that the price has been constant over time. suppose further that this year the firm built a new plant for $6 million and acquired $3.0 million worth of equipment. it had no other investment projects, and to avoid complications, assume no depreciation. now suppose that at the end of the year, oceanaire had produced 550,000 units but had only sold 500,000 units and that inventories now contained 50,000 units more than they had at the beginning of the year. at $225 each, that means that the firm added $11,250,000 in new inventory.
this year oceanaire actually invested $. (enter your response as an integer.)
oceanaire planned to invest $. (enter your response as an integer.)
oceanaire should produce
a. more output next year since it needs to add to its unplanned investment.
b. more output next year since it needs to add to its equipment.
c. less output next year since it needs to reduce its equipment.
d. less output next year since it needs to reduce its unplanned investment.
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 23:30, zoelynn8386
On september 12, ryan company sold merchandise in the amount of $5,800 to johnson company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. ryan uses the periodic inventory system and the net method of accounting for sales. on september 14, johnson returns some of the non-defective merchandise, which is restored to inventory. the selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. the entry or entries that ryan must make on september 14 is (are): multiple choice sales returns and allowances 490 accounts receivable 490 merchandise inventory 350 cost of goods sold 350 sales returns and allowances 490 accounts receivable 490 sales returns and allowances 500 accounts receivable 500 sales returns and allowances 490 accounts receivable 490 merchandise inventory 343 cost of goods sold 343 sales returns and allowances 350 accounts receivable 350
Answers: 1
Business, 22.06.2019 12:10, destinycasillas
Profits from using currency options and futures. on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda. com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2
Answers: 1
Business, 22.06.2019 16:30, sammuelanderson1371
Which of the following has the largest impact on opportunity cost
Answers: 3
Business, 23.06.2019 00:00, silonis21
1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?
Answers: 3
You know the right answer?
Suppose that in the year 2015, oceanaire, inc. planned to produce 550,000 units of its lightweight s...
Questions in other subjects:
History, 16.03.2020 20:02
Social Studies, 16.03.2020 20:02
