You own a lot in key west, florida, that is currently unused. similar lots have recently sold for $1,320,000. over the past five years, the price of land in the area has increased 6 percent per year, with an annual standard deviation of 32 percent. a buyer has recently approached you and wants an option to buy the land in the next 12 months for $1,470,000. the risk-free rate of interest is 4 percent per year, compounded continuously. how much should you charge for the option?

If tracking employees through technology is not illegal, why should megan be concerned if she is not involved in any misconduct?

Braverman company has two manufacturing departments—finishing and fabrication. the predetermined overhead rates in finishing and fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. the company’s direct labor wage rate is $16.00 per hour. the following information pertains to job 700: finishing fabrication direct materials $ 410 $ 60 direct labor $ 128 $ 48 required: 1. what is the total manufacturing cost assigned to job 700? 2. if job 700 consists of 15 units, what is the unit product cost for this job?

San ruiz interiors provides design services to residential and commercial clients. the residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. management is studying whether to drop the residential operation. if closed, the fixed operating costs will fall by $370,000 and san ruiz’ income will