a perfectly competitive firm sells 300 units and realizes a profit of $6000. the average total cost at this quantity is $26. what is the market price?

Answers

Answer 1

Comparing total cost and total revenue to determine the highest profit. As long as it accepts the current market price, a company that operates in a highly competitive environment is free to sell as much as it wants.

Total revenue will rise if an organization sells more units at a given price.

How does a perfectly competitive business determine pricing?

A perfectly competitive business cannot set its own price because it must pay what the market's demand and supply for the product dictate. The profit equation already takes this into account, so the highly competitive company can sell as many units as it wants at the same price.

The quantity with the greatest disparity between total revenue and total costs will yield the greatest profit. A straight line rising is the total revenue for a perfectly competitive business; The slope is proportional to the product's cost.

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Related Questions

If you were looking to invest in a mutual fund focused on safety and minimal growth, what type of mutual fund would you invest in?.

Answers

One of the investing categories with the lowest volatility is money market mutual funds.

What you mean by Mutual funds?

An example of a fixed income mutual fund that invests in debt securities is the money market mutual fund, which is distinguished by its investments' short maturities and low credit risk.

One of the investing categories with the lowest volatility is money market mutual funds.

The top low-risk investments for October 2022 are listed below:

certificates of deposit for brief periods.

Money market investments.

Bonds, TIPS, and Treasury Bills.

corporate obligations

stocks that provide dividends.

preferred securities.

a fixed annuity

Bonds with a AAA rating are among the most secure, but they also have the lowest yields. The risks and returns of stocks, on the other hand, are larger. However, by making stock exchange-traded fund investments, you can lower your risk exposure (ETFs).

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if andy pforzheimer, owner of barcelona restaurants, were to argue with one of the restaurant managers over whether customer satisfaction was more important than restaurant profit, what would be the source of their conflict? resource competition differing task goals change task interdependence

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The source of conflict between Andy Pforzheimer and the restaurant manager would have the differing task goals as a source of conflict.

Different task goals are an important consideration for a business to understand which goals work best for a company.

In the scenario above, the owner of the Barcelona restaurant and the restaurant manager are determining whether the goal task of customer satisfaction or restaurant profit is important for their business.

As they have a conflict among two different goal tasks hence will say that they have a conflict about differing goal tasks.

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in 1997, russia and ukraine exported carbon steel plate into the u.s. at a price much lower than the countries were found guilty of charging the identical steel in their home markets. russia and ukraine were engaged in:

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In 1997, Russia and Ukraine exported carbon steel plates into the U.S. at a price much lower than the countries that were found guilty of charging identical steel in their home markets. Russia and Ukraine were engaged in dumping.

What is dumping?

Dumping is described as a process in which companies sell their products are a subsidized price or at a very low price. This is because such products are manufactured in large quantities and now such products are then sold in different markets at a reduced rate. In this process, a company or a country can carry out the dumping process.

In this scenario, Russia and Ukraine, in 1997, carried out dumping by exporting carbon steel plates into the US market at very cheap rates. This was later found out and both countries were charged with the guilt.

It can be concluded that in 1997, Russia and Ukraine exported carbon steel plates into the U.S. at a price much lower than the countries that were found guilty of charging identical steel in their home markets. Russia and Ukraine were engaged in dumping.

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the costs of modern communication continue to decline because of . a. increased power of corporations b. increased usage and competition c. decreased capacity d. decreased speed of communication please select the best answer from the choices provided

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As consumers become more reliant on goods and services like high-speed internet connections, cellphones, computers, and TV broadcast services, the communication business is in great demand.

The demand for products and services in the communication sector is high, but costs have decreased as a result of increased competition brought on by a growth in the number of businesses providing these goods and services. The internet became more popular and less expensive in 2000 as a result of industrialization and technological development. This allowed people to conduct browsing, assist students in learning from the web's resources, facilitate communication, and assist in running their own businesses, ushering in a new period of economic expansion. The use of modern technology has sped up, made more convenient, and reduced the cost of international communication.

The development of technology has made monotonous jobs simple.

Nowadays, machines may be programmed to perform all arduous tasks.

Additionally, international business transactions have become simple.

Since data monitoring and analysis can now be completed much more quickly than in the past, even research and scientific studies have become simple.

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business has increased such that a few years ago purple reign brought warehousing and distribution in-house to package and ship customer orders. with business continuing to expand, the company now is making the decision to continue to order boxes from box manufacturers or buy a corrugate machine that will manufacturer boxes to customized sizes on demand. the company expects to have 120,000 orders in 2022 and each order will use one box. when buying boxes from manufacturers, the company needs to buy different size boxes to account for different orders. this pushes the average cost of each box to $0.47. the box machine purple reign is considering costs $30,000, but lowers the variable cost of each box to $0.22 because the company is able to manufacture each box on-demand. if the company buys boxes from manufacturers, purple reign likes to have a contract with each to ensure needs are met to certain specifications. purple reign can have all contracts negotiated for $6,000. based on this information, and considering only the information we have based on 2022 projects, should purple reign purchase a box machine and make boxes on demand or should the company continue to buy boxes from outside providers? for 2022, what is the best economic decision?

Answers

When a corporation decides to manufacture its own boxes: $35,000 is the total fixed cost incurred ( Cost of Machine) Making one box typically costs $0.21. When a business decides to purchase boxes from manufacturers: Total Fixed Cost incur = $3000.

The total fixed cost formula is really an aggregation of all fixed costs that an organization incurs. By evaluating all costs as activity quantities change, these costs can be found. A cost is regarded as fixed if it does not change depending on the degree of activity. Some expenses are categorized as mixed expenses because they include both fixed and variable cost components.

Understanding how total costs are split between variable and fixed expenditures is essential for marketing. In order to accurately predict the revenue generated by various changes in unit sales and, consequently, the financial impact of suggested marketing initiatives, this distinction is essential.

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You are responsible for receiving, maintaining, and supporting the beneficiary for the duration of their temporary stay in the united states. Describe the resources you plan to use or provide to ensure the beneficiary has adequate financial support to cover their basic living needs.

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The resources that I plan to use or provide to ensure the beneficiary has adequate financial support to cover their basic living needs is the use of  Financial Assistance resources such as Insurance, that of Living Assistance, as well as Tax Assistance programs to bring my plan to reality.

What do you mean by financial assistance?

Financial support includes any type of direct, insured, or guaranteed loan, including remortgaging and taking on new loan terms, as well as any grant or other direct or indirect help provided by the Agency.

Educational institutions give students the chance to pursue and complete higher education by offering financial aid. Additionally, helping others can encourage students to adopt a generous attitude once they are successful professionals.

Therefore, In a life insurance policy, retirement plan, or health savings account, the individual or organization identified as beneficiary is known as the beneficiary. When someone passes away, this person is the one who benefits. In order to receive your benefits, the beneficiary designation that was on record at the time of death must be followed.

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a manufacturer reports the following costs to produce 15,000 units in its first year of operations: direct materials, $15 per unit, direct labor, $11 per unit, variable overhead, $150,000, and fixed overhead, $210,000. of the 15,000 units produced, 13,700 were sold, and 1,300 remain in inventory at year-end. under variable costing, the value of the inventory is:

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The total production cost divided by the quantity of units produced yields the cost per unit under absorption costing. Absorption costing is an inventory valuation, therefore it is a capitalized cost that is recorded on the balance sheet up until the product is sold rather than a regular expense.

Cost is equal to units x (direct materials + direct labor) + variable and fixed overhead, which comes to $3600,000.
The price per unit is $24 (360000/1500).
The value of inventory is determined by multiplying the number of units left in stock by the cost per unit, which comes to 1300*24 = $31200.
According to absorption costs, the inventory is worth $31200.

When producing income tax filings and external financial reporting, GAAP mandates the use of absorption costing. The costs listed below are regarded as period costs under absorption costing and are not included in the cost of a product.

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the marginal product of labor is the change in: a total costs divided by the change in the quantity of labor. b total output divided by the change in the quantity of labor. c labor divided by the change in total product. d average output divided by the change in the quantity of labor. e total costs divided by the change in the quantity of output.

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The marginal product of labor is the change in total output divided by the change in the quantity of labor. The difference in production that occurs by using an extra unit of labor is known as the marginal product of labor.

As a metric of production efficiency, the marginal product refers to the extra units of output that are added to the total production when the labor is increased by one unit.

The labor efficiency variance may be thought of as a variance based on the number of labor hours used in manufacturing. It is the discrepancy between the actual number of direct labor hours a person worked and the budgeted direct labor hours a person is expected to have done in order to meet standards. It should be emphasized that the labor efficiency variance is the difference between the real labor rate multiplied by the number of hours of labor actually performed and the standard labor rate multiplied by the number of hours of labor actually performed.

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Devon intends to set a very low price for one of his company’s products in hopes of driving the competition out of business. Devon is engaged in.

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What Devon is engaged in that business strategy is called predatory pricing.

Predatory pricing is a pricing strategy in a business where a company charges a very low price for their product so it can drive its competition out of the business. Since their product is very cheap compared to the competition, the customer would choose their product over the others. After some time, the competition would be forced to close down from the lack of sales.

Once there is no more competition in the business, the company that does the predatory pricing strategy would then increase their product prices again.

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If Pertino Inc. has a debt ratio of 40 percent, it means that for every $1 in _____, the firm has 40 cents in _____.

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If Pertino Inc. has a debt ratio of 40 percent, it means that for every $1 in asset , the firm has 40 cents in debt.

What is the debt ratio?

The debt ratio is a financial ratio that is used to determine the solvency of a company. Financial ratios use information from the balance sheet, income statement and statement of cash flows of a business to determine the financial health of a company.

It is a ratio of total debt to total asset. It is determined by dividing total debt by total asset. The lower debt ratio is, the lower the financial risk of a company. The debt ratio is an example of a solvency ratio.

Debt ratio = total debt / total asset

0.4 = 0.4 / 1

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a. in the fiscal year ended july 31,2014, intuit reported net income of $1,009 million. how much did intuit pay in dividends to its common shareholders?

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Intuit paid $211 million in dividends to common stockholders for the year ended July 31, 2014.

What is stockholders ?Stockholders are also called corporate or individual shareholders who own at least part of the share capital of an organization. Stockholders most often own the company and usually buy the company's performance in the form of a higher stock valuation.To elaborate on the underlying meaning of the term, "shareholders" technically mean owners of shares, which can be interpreted as inventory rather than shares. Conversely, “shareholder” means the owner of the shares and only the equity interest in the company.Holders of ordinary shares of a corporation are called ordinary stockholders.Common stockholders elect the company's board of directors and vote on certain transactions, such as:  Merger of Company with Another Company.

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public-sector workers (police, firefighters, teachers, and other government workers) belong to labor unions at a much higher rate than do nongovernment workers. question 6 options: true false

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It is completely inappropriate to say that the public-sector workers (police, firefighters, teachers, and other government workers) belong to labor unions at a much higher rate than do non-government workers. Therefore, the statement given above is false.

What is the significance of labor unions?

Labor unions can be referred to or considered as the formation of groups for the workers that belong to the same organization or the same industry. A labor union is made to gain protection against wrongdoings faced by the workforce.

More private workers and the workers belonging to the non-government organizations are a part of the labor unions. This is because the government already provides much of the protection to its workforce.

Therefore, the significance regarding labor unions is false and has also been aforementioned.

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blue hills, an organization that works to protect forests and wildlife in indonesia, conducts research on protected forest cover and encroached forest land. this research does not result in any further action or recommendation. in its report, the organization documents the research conducted by summarizing research findings. this is an example of a(n) report.

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Blue Hills, an Indonesian conservation organization, conducts research on protected forest cover and encroached forest land. This study yields no further action or recommendation. The organization documents its research by summarizing research findings in its report. This is an illustration of an informative report.

What is informative report?Decision-making reports, policy reports, compliance reports, status reports, and other forms of informational reporting are examples. Introduction, body, and conclusion are common formats for information reports. The introduction introduces the topic, the body elaborates on the topic, and the conclusion summarizes everything. Informational reports (annual reports, monthly financial reports, and absenteeism reports) transport objective data from one area of an organization to another. Analytical reports (scientific research, feasibility studies, and real-estate appraisals) present solutions to problems. It provides data, facts, and feedback but does not provide analysis or recommendations.

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20 POINTS!! HELP QUICK PLEASE!!


Type the correct answer in the box. Spell all words correctly.

Which accounting principle is adopted to make adjustments to the trial balance so that the debit and the credit side balances?

The accounting principle adopted to make adjustments to the trial balance so that its debit and credit side balances is _______ basis of accounting.

Answers

The accounting principle adopted to make adjustments to the trial balance so that its debit and credit side balances is the double-entry basis of accounting.

Accounting principles are considered to be the rules and guidelines which the  companies and other bodies must follow while reporting any financial data within an organization. Here, a company's transactions are recorded in a general ledger and later it is summed to be included in a trial balance.

A double-entry is a basis of accounting which is thus based on a simple principle, that for every debit must have equal and opposite credit. Which means that there should be at least two accounts involved in any transaction.

Hence, the double-entry is based on the debit and credit accounts of the done transaction.

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a short-term investment goal is one that will be accomplished within a period of: multiple choice one year or less. two to five years. more than five years. three years or less. two years or less.

Answers

A short-term investment goal is one that will be accomplished within a period of three years or less.

What is a short term investment?

The time horizon for short-term investment objectives is one year or fewer. They consist of items like an emergency money or a security deposit for your future dwelling. Your objective with short-term goals should be a high level of security with little danger. When you need to sell an investment to acquire cash, you don't want to lose any of it. And that is the core concept of liquidity: the capacity to obtain money without delay or loss. However, stability comes with a price. You won't make much money from this. You can be sure you'll have all the money you need when you need it since low returns are the opposite side of low risk.

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an investment offers a total return of 9.0 percent over the coming year. janice yellen thinks the total real return on this investment will be only 2.5 percent. what does janice believe the inflation rate will be over the next year?

Answers

Janice believes the inflation rate will be 4.72% next year

Compute the exact inflation rate as follows:

Nominal rate of interest =(1 + real rate)x(1 +inflation rate)-1

11%=(1+6%)x(1 +inflation rate)-1

1+11% / (1+6%) -1 = inflation rate

inflation rate =4.72%

Thus, the inflation rate is 4.72%.

On the above, the better costs of those objects earn the lender more interest. As an example, if the rate of tv will increase from $1,500 to $1,600 due to inflation, the lender makes extra money due to the fact that 10% interest on $1,600 is more than 10% interest on $1,500.

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investment a costs $10,000 today and pays back $11,500 two years from now. investment b costs $8000 today and pays back $4500 each year for two years. if an interest rate of 5% is used, which alternative is superior?

Answers

If an interest rate of 5% is used, then investment A is superior.

Define interest rate.

A rate of interest tells you how expensive borrowing is or how advantageous saving is. Therefore, if you are a borrower, the interest rate is the cost of borrowing money and is stated as a percentage of the total loan amount.

The real interest rate accounts for inflation by calculating the rise in the loan's real value plus interest. The repayment of principal and interest is computed in real terms by comparing the amount to its purchasing power at the time it was borrowed, lent, deposited, or invested.

To find the NPV of two investments

NPV (A) = -10000 + 11500 (P/F, 5%, 2)

= -10000 + 11500*0.90703

= 431

NPV (B) = -8000 + 4500(P/A, 5%, 2)

= -8000 + 4500*1.8594

= 367

Since NPV (A) > NPV (B)

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luca, a manager at a commercial real estate firm, has established a monthly sales quota for his sales team. which basic function of management best describes luca's actions?

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The basic function of management that describes Luca's actions of establishing a monthly sales quota for the sales team is Controlling.

What are the basic functions of management?

There are five basic functions of management including controlling, planning, organizing, staffing, and leading.

Controlling calls for establishing certain measures or standards and goals that the company or department has to meet. The company or department would then have to work towards achieving those goals and standards.

Luca is most likely engaged in the controlling function because he established a sales quota for the team that they have to meet. Meeting this sales quota would ensure that the company is better off.

Another function of management which is closely related to this is planning. Luca engaged in planning for the sales that his sales team would make by coming up with a quota.

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As ________blank, pioneers have the advantage of creating a new market or product category, establishing a commanding initial market share lead.

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As first movers, pioneers have the advantage of creating a new market or product category, therefore establishing a commanding initial market share lead.

The major benefit of being a first mover om a new market or product category is the opportunity to build impactful brand awareness and customer loyalty. That way, first movers can easily dominate the market or product category and maximize early sales, gaining an upper hand against their rivals. They can also adjust their good or service quality as well as refine their marketing strategy with the additional time they get before rivals start to enter the market.

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now that you have identified the problem between the ceo and the portuguese workers as a conflict between individualistic and collectivist cultures, what do you tell the ceo?

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Portugal, like the majority of European nations, scored poorly on individualism with a score of 27. As a result, it is a collectivist society. This translates into an intense and sustained dedication to the person's in-group, whether it be their immediate family, their extended family, or other connections.

Explain about the Portuguese collectivist culture?

Additionally, because Portugal is a collectivistic country, upholding one's reputation and dignity is crucial to earning respect as an individual and preserving one's family's honor.

The Portuguese indulge their passion of art, music, drama, and dance by taking part in a variety of cultural activities. Portuguese folklore (Ranchos Folclórios) is rich and diverse across the country. A museum and a collection of historic structures can be found in many cities and villages.

Portugal is a predominantly Roman Catholic country that places a lot of value on family. Its rich cultural heritage has been influenced by a variety of cultures, including Celtic, Lusatian, Phoenician, Germanic, Visigoth, Viking, Sephardic Jewish, and Moorish.

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if a deed restriction prohibits a use permitted by zoning, then: select one: a. zoning controls. b. the deed restriction controls. c. neither will prevail. d. the nature of the use will be the controlling factor.

Answers

If a deed restriction prohibits a use permitted by zoning, then the deed restriction controls. So the correct answer choice is option (b).

What is a deed restriction?

a constraint imposed on how property described in a deed in the chain of title may be used is regarded as a deed restriction.  The restriction runs with the land when the property is transferred and is typically unremovable by subsequent owners.

A specific kind of deed restriction is a restrictive covenant. Limitations on the use of the property are one type of restriction.

how big the lot is.the building's height.the building's materials or design, whether or not it is built on the site.

The US Supreme Court has found that some deed limitations, such as those that forbid the sale of land to specific racial or ethnic groups, are unenforceable.

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the rate at which one currency is converted into another is multiple choice the exchange rate. the carry trade rate. the conversion rate. the currency swap. currency speculation.

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The exchange rate is the price at which one currency is transformed into another. Carry trade refers to the idea of borrowing money in a currency with low interest rates and investing the money in a currency with high interest rates.

What is the name of the ratio used to convert one currency to another?

Conversion rate :  The rate at which one currency will be exchanged for another is known as the exchange rate. Some exchange rates are linked or fixed to the value of a particular country's currency, however most exchange rates are floating and will increase or decrease depending on market supply and demand.A currency's relative value expressed in terms of another currency is called an exchange rate (or group of currencies).Suppose you want to convert $100 in U.S. dollars into euros at the current EUR/USD exchange rate of 1.20. Just multiply $100 by 1.20. The amount of euros as a result is 83.33. Reversing that technique is required to convert euros to dollars: multiply the number of euros by 1.20 to get the number of dollars.The cross rate is the rate at which two currencies are being exchanged for one another when measured against one another's currencies. A cross rate is the exchange rate between two currencies stated in a third, distinct currency, such as the yuan to euro exchange rate.

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current liabilities are due a.but not receivable for more than one year b.but not payable for more than one year c.and payable within one year d.and receivable within one year

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Current liabilities are due and receivable within one year. Current liabilities are a business's short-term debts that are due in a year or within a typical operational cycle.

Current liabilities are usually settled through current assets, which are resources that are consumed within a year. Accounts payable, short-term loans, dividends, and notes payable are a few examples of current liabilities, along with any outstanding income taxes.

Investors and creditors alike value the examination of current liabilities. This might provide a picture of a business's ability to handle its existing responsibilities and maintain its financial stability. Commonly, current assets—assets that are depleted within a year—are utilized to satisfy current liabilities. The capacity of a business to continue making timely debt payments is largely due on the ratio of current assets to current liabilities.

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your opinion is that boeing has an expected rate of return of 0.0952. it has a beta of 0.92. the risk-free rate is 0.04 and the market expected rate of return is 0.10. according to the capital asset pricing model, what is the alpha, and is this security over-priced, underpriced, or fairly valued?

Answers

The security or stock is overpriced because the required rate of return (9.52%) is greater than the expected rate of return (9%).

What is stock?A stock, also known as equity, is a financial instrument that represents ownership of a portion of the issuing corporation. Shares are units of stock that entitle the owner to a proportion of the corporation's assets and profits equal to the amount of stock they own. Stocks are ownership stakes in a publicly traded company. When you purchase stock in a company, you become a part-owner of that company. If a company has 100,000 shares and you purchase 1,000 of them, you own 1% of the company. A stock is a type of security that represents a portion of a company's ownership. When you buy stock in a company, you are purchasing a small piece of that company known as a share.

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in a cloud computing arrangement, if the customer has a contractual right to take possession of the software without significant penalty and the customer could run the software on its own, the costs are treated as multiple choice question. purchased intangibles. self-constructed assets. software development costs. goodwill.

Answers

Cloud computing arrangements are ones in which a customer does not have possession of the underlying software. Rather, the customer accesses and uses the software on an as-needed basis.

Computing is any aim-orientated hobby requiring, making the most of, or creating computing machinery. It includes the take a look at and experimenting with algorithmic methods and the development of both hardware and software programs. Computing has scientific, engineering, mathematical, technological, and social elements. Principal computing disciplines encompass computer engineering, computer technological know-how, cybersecurity, statistics technology, statistics structures, statistics generation, and software program engineering. The time period "computing" is also synonymous with counting and calculating. In earlier instances, it turned into utilized in reference to the action accomplished by means of mechanical computing machines, and before that, to human computers.

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pinewood company purchased two buildings on four acres of land. the lump-sum purchase price was $1,600,000. according to independent appraisals, the fair values were $765,000 (building a) and $425,000 (building b) for the buildings and $510,000 for the land. required: determine the initial valuation of the buildings and the land.

Answers

The initial valuation of the building A=$540000

The initial valuation of the building B=$300000

The initial valuation of the land=$360000

In finance, valuation is the system of determining the prevailing price (PV) of an asset. In a business context, it's far more often the hypothetical rate that a third birthday party would pay for a given asset. Valuations may be performed on assets (for example, investments in marketable securities consisting of corporations' shares and associated rights, business firms, or intangible assets together with patents, facts, and logos) or on liabilities (e.G., bonds issued by means of an employer). Valuations are wished for lots motives inclusive of investment evaluation, capital budgeting, merger and acquisition transactions, financial reporting, and taxable events to determine the proper tax legal responsibility.

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which of the following statements is true regarding how various decision styles impact employees? group of answer choices a democratic style results in positive attitudes a democratic style is the fastest way to make decisions a laissez-faire style results in higher performance an autocratic style results in lower performance a laissez-faire style results in positive attitudes

Answers

Positive attitudes are the product of a democratic style. The following traits are frequently found in leaders that practice democratic leadership. Leaders that practice shared leadership put their teams in charge of coming up with ideas and solutions.

This trust motivates teams to collaborate in novel ways without micromanaging, which fosters organizational creativity. Positive attitudes are the product of a democratic style. A company's top management decided that low sales would prevent them from awarding end-of-year bonuses.

It encourages an atmosphere of creativity. A creative environment is promoted by the democratic leadership style by promoting team members' invention and contribution. For instance, due to the inherent support in this style of leadership, creative professionals typically prosper under it.

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marketing campaigns that are based on environments or activities where the subject is not aware that she or he is the target of a marketing campaign are referred to as

Answers

Marketing campaigns that are based on environments or activities where the subject is not aware that she or he is the target of a marketing campaign are referred to as stealth marketing.

What is stealth marketing.?

Stealth marketing can be described as the type of marketing that is been used ny the orgaization whereby the customers that are been advertisd to will not be able to have the knowlege that they are been advertised to.

It should be noted that this type of advertising do not require more money ty do compare ,most of the other types of advertising method that is been used.

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the difference between a standalone managed service account (smsa) and a group managed service account (gmsa). why use one service account over another?

Answers

Standalone Managed Service Account can be used on a single server only. Use a Group Managed Service Account if you need to use the account across servers.

What is Service Account?

A service account is a special type of account intended to represent a non-human user who must be authenticated and authorized to access data in APIs.

Service accounts are typically used in scenarios such as: Run workloads on virtual machines (VMs).

Service accounts differ from user accounts in several important ways.

Service account do not have passwords and cannot be logged in via browser or cookies.

Service account is for use by applications.

Multiple applications rarely perform the same function and therefore have similar or identical access requirements.

Instead, applications tend to be unique, and the resources they need to access are usually different for each application.

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the existing spot rate of the canadian dollar is $.82. the premium on a canadian dollar call option is $.04. the exercise price is $.81. the option will be exercised on the expiration date if at all. if the spot rate on the expiration date is $.87, the profit as a percent of the initial investment (the premium paid) is: group of answer choices

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The net profit per unit is 50%.

       

The net profit per unit is: $.87 - $.81 - $.04 = $.02. The net profit per unit as a percent of the initial investment per unit is: $.02/$.04 = 50%.

    A financial ratio called net profit margin, sometimes referred to as profit margin or net profit margin ratio, is used to determine the percentage of profit an organization generates from its total sales. It gauges how much net profit a business makes for every dollar of revenue generated. The ratio of net profit, also known as net income, to total sales, stated as a percentage, is known as the net profit margin.

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