Suppose chef city manufactures cast iron skillets. one model is a 10-inch skillet that sells for $28. chef city projects sales of 625 10-inch skillets per month. the production costs are $5 per skillet for direct materials, $2 per skillet for direct labor, and $3 per skillet for manufacturing overhead. chef city has 60 10-inch skillets in inventory at the beginning of july but wants to have an ending inventory equal to 25% of the next month's sales. selling and administrative expenses for this product line are $1,000 per month. chef city is budgeted to produce 721 skillets in july with a $10 production cost per skillet.

compute the budgeted cost of goods sold for july.

a) $5,887
b) $7,810
c) $7,210
d) $6,250

show how anser is calculated.

Monthly price data for mdltx and ekwax from yahoo finance is contained in the excel spreadsheet for this exercise. there are 37 months of price data for the period from september 2009 to september 2012. (note: these prices already incorporate dividend payments.) the 36 monthly returns for each fund are also provided. calculate average (arithmetic) monthly return and standard deviation for each fund. you can use the excel functions average, stdev to derive these stats. annualize these statistics. use the correl function in excel to derive the correlation coefficient between the two sets of returns. (annual correlation is the same as monthly correlation. hence, no need to annualize this stat.) using the annualized statistics derived in step 1, compute the expected return and standard deviation for portfolios containing from 0% to 100% mdltx (and 100% to 0% ekwax) by 10% increments. graph the resulting portfolios. based on your analysis, is there any potential benefit to diversification across these two funds? explain. of the 11 portfolios you graphed, which are efficient?