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Custom Furniture manufactures a small table and a large table.The small table sells for $800,has variable costs of $540 per table,and takes 10 direct labor hours to manufacture.The large table sells for $1,620,has variable costs of $1,000,and takes eight direct labor hours to manufacture.Calculate the contribution margin per direct labor hour for the small table.
Hedge Ratios
A mathematical approach to minimizing risk by determining the optimal proportion of positions needed to offset potential losses.
Long Puts
An option strategy involving the purchase of put options, with the expectation that the underlying asset will decrease in value, allowing the holder to sell at a higher strike price.
Riskless Arbitrage
The process of buying and selling in different markets to take advantage of differing prices for the same asset with no risk.
Standard Deviation
A statistical measure of the dispersion of a set of data from its mean, used to gauge the amount of variation or dispersion of a set of values.
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