This attempt took 15 minutes. Partial Question 1 Consider the following short box spread. All prices are in USD. Exercise December December Price Call Price Put Price 80 5.88 4.75 85 3.13 7.75 Please round the number solution to 2 decimal places. Format: 1234.68-ST or -60.00+ST Payoff at t=6 months Transaction (NOW) Payoff (Now t3D0) ST < 80 80 s ST< 85 ST 285
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- The cost of product X is 30 percent of its selling price, and the carrying cost is 8 percent of selling price. Accounts are paid on average 60 days after sale. Sales per month average P35,000. What is the investment in accounts receivable? CHOOSE THE ANSWERA. P600.00B. P6,600.00C. P19,000.00D. P16,600.00E. P26,600.00RedRed Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .84 percent per month. Current PolicyNew PolicyPrice per unit$ 980$ 980Cost per unit$ 790$ 790Unit sales per month1,0401,120 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Calculate the missing values. Express dollar values rounded to two decimal places and break-even volumes rounded up to the next integer. Fixed Cost (FC) per month Variable Cost (VC) per unit Selling Price (S) per unit Break-even Volume (x) per month Total Variable Cost at Break-even (TVC) per month Total Revenue (TR) per month at Break-Even $8,600.00 $23.00 $38.00 $127,000.00 $500.00 1,050 $720.00 $80.00 21 $33.00 $52.00 425
- a. Assume that the cost of goods sold is 60% and that the monthly discount rate is 1%. Looking at the values in the exhibit above, you note that the average monthly revenue for a subscribed customer rises as the company sends more emails. In addition, the average monthly revenue for an unsubscribed customer also rises as the company sends more emails. What could explain both of these patterns? b. Calculate the 6-month LTV for each of the four tested email frequencies. Please show the spreadsheet with your calculations and be clear about any assumptions you are making. c. Based on this test, how many emails-per-week should the company be sending to its customers? This email frequency should apply to all customers; the company doesn't want to implement a different email frequency for different kinds of peopleRed Hawk, Incorporated, is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .62 percent per month. Current Policy New Policy Price per unit $ 760 $ 760 Cost per unit $ 555 $ 555 Unit sales per month 820 870 Calculate the NPV of the decision to switch. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)The following data are avaibble from the reccords of a compary: Sales: Rs 60,000 V.C:Rs 30,000 Fixed Cost: Rs 15, 000 Calculate: 1) P/VRatio BEP(Rs) and M/S at this lend. 2) The effect of10%increase in sales price 3) The effect of10%decrease in sales price
- Suppose that the base market is 500,000 out of 10M population, determine the net sales given the following. Awareness is 55%, Trial is 30%, Availability is 100%. Purchase frequency is 30.2%, Units bought per purchase is 4.25, price is 25.50 per unit and cannibalization rate of 40%. Net sales is ______. Round off to 2 decimal placesThe demand for your handmade skateboards, in weekly sales, is q=-2p+494 if the selling price is $p. You are prepared to supply q=4p+224 skateboards per week at the price $p. What is the equilibrium price? (Round to the nearest cent which is two decimal places. Do not include units or symbols.)Dynamic Futon forecasts the following purchases from suppliers: Jan. Feb. Mar. Apr. May Jun. Value of goods ($ millions) 37 33 30 27 25 25 a. Sixty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of 1 month. If Dynamic Futon starts the year with payables of $27 million, what is the forecasted level of payables for each month? (Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 1 decimal place.) Jan. Feb. Mar. Apr. May Jun. Payables b. Suppose that, from the start of the year, the company stretches payables by paying 50% after 1 month and 20% after 2 months. (The remainder continue to be paid cash-on-delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment. Assume that Dynamic Futon didn't have any payable balance at the start of the year. (Do not round intermediate calculations. Enter your answers in millions of…
- Outlook Gateways has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this magazine. ⚫What can be the EOQ of this? With above data find the Setup Cost and Holding cost for a year. What is the Reorder Point. ⚫What is the annual demand to production ratio in this case. What does it indicate for the company? ⚫Launch a magazine and plan the Inventory and Production process in great details. List down your assumptions carefully.TTT Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag=P2.50 Purchase cost/bag =P1.50Ordering cost =P5.40/orderCarrying cost=20% of unit costOperating days per year=250Ave. lead time on purchases=6 daysMaximum lead time=13.5 days Compute the reorder point for TTT Inc.Ivanhoe Traders has annual sales of $1,600,000. The firm's financial manager has determined that using a lockbox will reduce collection time by 2.1 days. If the firm's opportunity cost on savings is 4.90 percent, what are the savings from using the lockbox? (Do not round itermediate calculations. Use 365 days for calculation. Round answer to 2 decimal places, e.g. 12.25.) what is the Savings from using the lockbox?