The manufacturing cost of calico industries for three months of the year are provided below: total cost production (units) april $113,400 281,300 may 87,600 167,700 june 108,100 235,300 using the high-low method, the variable cost per unit and the total fixed costs are a. $0.23 per unit and $48,701 b. $4.14 per unit and $4,870 c. $2.30 per unit and $4,870 d. $0.41 per unit and $24,351

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out