ABC Company has decided that Tom Terrific is not going to pay them. Tom owes ABC $500. ABC will: Group of answer choices reduce its accounts receivable by $500 do nothing have $500 of bad debt expense receive cash of $500
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- plz provide answer for question 3 asap20-5. BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006 , a big client gave BPO a distribution of the forms that tit digitized in house last year,and BPO estimated how much it would cost to digitize each form. Form types mix of Forms % Form costs $ A 25 0.25 B 25 0.10 C 25 0.15 D 25 0.50 Compute the average cost of digitizing a form. The client agreed to pay the average cost computed in A for each form that BPO processed, but BPO lost money on the contract. How much did BPO lose, on average, for each form that it processed?Given a QD = 100 – 2P and QS = 6P – 20 Compute the total revenue at P*.
- Dana owns a building that she purchased for $600,000. Its current replacement cost is $2 million. The building is covered up to $1,000,000 for fire-related perils by ZRP Insurance Company, with an 80% coinsurance provision and a $2,000 deductible. Last week, a fire broke out in the building, causing $900,000 in covered damage. What will ZRP Insurance Company pay for this loss? A)$562,500 B)$560,500 C)$718,000 D)$700,000RMC, Inc., is a small firm that produces a variety of chemical products. In a particular production process, three raw materials are blended to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of 2/5 ton of material 1 and 3/5 ton of material 3. A ton of solvent base is a mixture of ½ ton of material 1, 1/5 ton of material 2, and 3/10 ton of, material 3. After deducting relevant costs, the profit contribution is $40 for every ton of fuel additive produced and $30 for every ton of solvent base produced. RMC’s production is constrained by a limited availability of the three raw materials. For the current production period, RMC has 20 tons of material 1, 5 tons of material 2, and 21 tons of material 3 that are available for production. Assuming that RMC is interested in maximizing the total profit contribution, answer the following: a. Find the optimal solution. How many tons of each product should be produced, and what…No chatgpt pls
- Corporate tax is included while calculating profit True/FalseYou own a family farm, worth $500,000, and need to decide what to do with this year’s earnings of $400,000. (i) You could put the money in the bank and earn a safe 5% return. (ii) Or you could pay $200,000 to plant a new crop, which will yield a harvest in six months; if there is rain, the harvest will bring in $1.000,000 in revenues, but if there is a drought it will yield just $100,000 in revenues. (iii) A third alternative is to plant Santo drought-resistant seed corn, which will cost $500,000, but yield revenues of $1,000,000 if there is rain or $700,000 if there is no rain. You are risk averse, and your reference for family wealth (W) is given by U(W) = √W [Square root of W]. The probability of a summer drought is 0.33. Which of the three options should you choose? Explain.Calculate the expected monetary value (EMV) of both company actions. Which action should the company take?
- Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: MODEL AVERAGEQUANTITYSOLD (UNITS/MONTH) CURRENTPRICE TOTALREVENUE VARIABLECOST PERUNIT CONTRIBUTIONMARGIN PERUNIT CONTRIBUTIONMARGIN* A B C Total 15,000 5,000 10,000 $30 35 45 $450,000 175,000 450,000 $1,075,000 $15.00 18.00 20.00 $15 17 25 $225,000 85,000 250,000 $560,000 *Contribution to fixed costs and profits.The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products’ chief economist estimates the arc price elasticity of demand to be –2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and Model C to be approximately 0.2. Variable costs…Sam, Inc. has current assets of $5,300, net fixed assets of $24,900, current liabilities of $4,600, and long-term debt of $10,300. What is the value of shareholder’s equity? Group of answer choices a. Cannot be determined without knowing the value of Common Stock b. $17,680 c. $60,030 d. $15,300 e. Cannot be determined without knowing the value of Retained EarningsD&R A3 3 - 7 Question 3. FRA Pricing, Valuation, Payoff, and Hedging Today is June 1. Sustainable Corporation has an obligation of $25 million coming due on August 1. The company is planning to borrow this amount on August 1 to fulfill its obligation, and plans to pay back the loan on December 1. The company’s borrowing rate is LIBOR + 125 basis points. The company’s bank presents it with the following LIBOR term structure: # days LIBOR 30 0.90% 60 1.00% 90 1.05% 120 1.10% 150 1.15% 180 1.18% 210 1.20% 240 1.21% For the calculation of interest, the bank assumes 30 days in a month, and 360 days in a year. Ms. Devro, the VP Finance of Sustainable, is worried that LIBOR will increase between June and August, thus increasing the company’s borrowing cost. She advises that the company enters into a forward rate agreement (FRA) with its bank to hedge its interest rate risk. She has asked you, the treasurer of the company, to…