User Account

All Pages

How does the optimal plan change as a function

Assignment Help Accounting Basics
Reference no: EM133030216

Question - Buying and Selling a Commodity. A small firm buys and sells wheat. They own a warehouse with a capacity of 10,000 bushels, and as of late August, there will be 2,000 bushels in the warehouse. Wheat is delivered to the warehouse during the first week of the month, and it is sold and shipped around the middle of the month. All transactions are on a cash basis because the season is short, and the firm expects to have $20,000 in its accounts at the end of August. This amount is available for making September purchases. The latest predictions of market prices are shown in the following table:

Sep 15 Oct 15 Nov 15

Buy $5.45 $5.75 $6.00

Sell $6.05 $6.25 $6.30

(a) What buy-and-sell schedule will produce the maximum profit for the firm?

(b) What is the optimal profit in part (a)?

(c) How does the optimal plan change as a function of the firm's account balance? (Consider amounts both above and below the current $20,000.)

Reference no: EM133030216

Questions Cloud

What is its weighted average cost of capital : Its optimal capital structure is 60% debt and 40% equity. If Corcovado's beta is estimated at 0.8, what is its weighted average cost of capital
Determine the corporation current earnings and profits : Oceans 11 Corporation reported taxable income of $500,000 in 20X3 and paid federal income taxes of $170,000. Determine the corporation current earnings
Precaution about the workplace : Has this employee alerted any concern or precaution about the workplace? What might your concerns be and what type of action would you consider taking?
Produce a sustainable competitive advantage : Do you think that the company's resources and capabilities are potent enough to produce a sustainable competitive advantage? Why or why not?
How does the optimal plan change as a function : How does the optimal plan change as a function of the firm's account balance? (Consider amounts both above and below the current $20,000.)
Develop two situational and two behavioural interview : Using the NOC job description and the competency job analysis develop two situational and two behavioural interview questions for either a university or college
Struggles with self-directed learning : Are you someone who struggles with self-directed learning and how do you overcome it?
What is the annual rental value : An outside supplier has offered to sell 31,000 units of part S-6 each year to Han Products for $23.50 per part. What is the annual rental value
Management reporting and disclosure act : Give the provisions of the labor Management Reporting and Disclosure Act

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd