The current spot exchange rate is $1.95/£ and the three-month forward rate is $1.90/£. Based on your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be $1.92/£ in three months. Assume that you would like to buy or sell £1,000,000. a)What actions do you need to take to speculate in the forward market? What is the expected dollar profit from speculation? b)What would be your speculative profit in dollar terms if the spot exchange rate actually turns out to be $1.86/£.
Answers
a) Expected profit is -$20,000. You must take the following steps to take part in forward market speculation:If you want to engage in forward market speculation, you must buy or sell foreign currency at the going rate and then sell or buy foreign currency at a later time at a predetermined rate.
It is a contract that details the quantity of the asset to be provided, the predetermined price, and a future delivery date.
The profit in dollars can be calculated as follows:
Expected profit from speculation = Amount Speculated × (Forward rate - Expected spot rate)
£1,000,000 × ($1.90/£ - $1.92/£) = -$20,000
b)The speculative profit in dollar terms if the spot exchange rate actually turns out to be $1.86/£ will be -$40,000 Speculative profit in dollar terms if the spot exchange rate actually turns out to be $1.86/£:
Profit can be calculated as follows:
Profit in dollars = Amount Speculated × (Actual Spot Rate - Forward Rate)
£1,000,000 × ($1.86/£ - $1.90/£) = -$40,000
Therefore, the speculative profit in dollar terms if the spot exchange rate actually turns out to be $1.86/£ will be -$40,000.
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Related Questions
without regard for life contingency, this annuity specifies monthly income for a stated number of years
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Annuity certain specified monthly income for a stated number of years without consideration of any life contingency.
What is Annuity certain?An investment known as an annuity certain offers a person, the person's beneficiary, or the estate a series of payments over a predetermined length of time. It is a retirement income investment that insurance companies are providing. You can also take the annuity as a lump amount. An annuity certain often offers a better rate of return than a lifetime annuity since it has a predetermined expiration date. Standard periods range from 10 to 20 years.
For a predetermined amount of time, an annuity certain offers a guaranteed retirement income.
It can be helpful in some circumstances as a short-term income supplement but is not a smart long-term retirement plan on its own.
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John and his 6 member project team, have been working 12-hour days, to complete and finalize the preliminary designs for the Construction of the USD 300 Million Hospital Infrastructure, so that it can be included as part of the Request for Proposal (RFP), which will be sent out to 4 participating companies. They eventually managed to complete the RFP documentation in a week, to be circulated to the prospective participants in this project. As part of the job well done and as a stress relieve. A. As a project leader did the right thing, with the objective of motivating his team and rewarding them for a job well done. B. As a project leader, did not do the right thing since team members may take advantage of the situation
Answers
As a project leader, John did the right thing, with the objective of motivating his team and rewarding them for a job well done.
After working long hours to complete the preliminary designs and RFP documentation for a high-stakes project, it is important to recognize and appreciate the efforts of the project team. Celebrating team achievements and taking a break to recharge can help to build team morale and motivation, and can also contribute to long-term productivity and job satisfaction.
By rewarding his team with a stress-relieving activity, John is acknowledging their hard work and commitment, and showing that he values their contributions to the project. This can help to foster a positive team culture and build trust and loyalty between the team members and the project leader. As long as the celebration is appropriate and does not interfere with the project timeline or budget, it can be an effective way to boost team motivation and productivity.
Option B: As a project leader, John did not do the right thing since team members may take advantage of the situation. While celebrating team achievements and taking a break can be important for team morale, it is also important to balance this with the demands of the project and the expectations of stakeholders.
If the celebration is excessive or inappropriate, it may give the impression that the project team is not taking the project seriously or that the project leader is not managing the project effectively.
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under autarky, domestic producer surplus is represented by the area a. above the supply curve and below the equilibrium price. b. above the supply curve and below the demand curve. c. below the demand curve and above the equilibrium price. d. above the demand curve and below the supply curve.
Answers
Above the supply curve and below the equilibrium price. Under autarky (no trade), domestic producer surplus is the area above the supply curve and below the equilibrium price.
What is supply curve?A supply curve is a graphical representation of the relationship between the price of a good and the quantity available for sale. It shows the maximum amount of a good that a seller is willing and able to supply at a given price. The supply curve is upward sloping, indicating that as price increases, the quantity supplied increases as well.
This is because the producer earns the equilibrium price for every unit produced, and thus earns more than the cost of production for every unit. This area represents the extra profit earned by the producer.
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An analyst obtains a market quote for the two-year forward rate two years from now. to derive the next point on a theoretical annual forward rate curve, the analyst can use the:___________
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An analyst obtains a market quote for the two-year forward rate two years from now. to derive the next point on a theoretical annual forward rate curve, the analyst can use the three-year and five-year spot rates.
Given the two-year forward rate two years from now, the next point on an annual forward rate curve is the two-year forward rate three years from now, 3y2y. This rate can be derived from the three-year and five-year spot rates as follows: (1 + S5)5 = (1 + S3)3(1 + 3y2y)2.
Job Analysts paint in the HR branch of companies or groups and study occupations and jobs to attention on category structures inside that field. The attention at enterprise and occupational developments in addition to employee relationships.
According to the U.S. Bureau of Labor Statistics, the median economic analyst revenue is around $85,000, however, this range may be deceptive due to the fact the common economic analyst revenue is nearer to $100,000 because of the acute boom in profits over time.
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Think of an issue in your community that you would like to fix or improve in some way. First, write down what it is, and then identify how you think it could be fixed, and how you or other people could do so.
Answers
For me i just wish my community was more active i would most likely do this by throwing community events
Explanation:
The additional income from
selling one more unit of a good
O increasing marginal returns
O diminishing marginal returns
O marginal revenue
O marginal product of labor
O marginal cost
Answers
C, marginal revenue
Explanation: Marginal revenue is the additional income from selling one more unit of a good. It is usually equal to the price.
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According to the classical theory of interest, what equilibrium interest rate will prevail given the above schedules of planned savings and investments?
a) What could cause the equilibrium rate to change?
b) Assuming interest rate is 6%, how will the equilibrium interest rate be restored?
c) Assuming interest rate is 11%, how will the equilibrium interest rate be restored?
Answers
a) Factors causing equilibrium rate change: consumer preference shifts, and investment opportunity changes. b) Restore equilibrium at 6%: increase planned investment or decrease planned savings. c) Restore equilibrium at 11%: decrease planned investment or increase planned savings.
To determine the equilibrium interest rate according to the classical theory of interest, we need to compare the schedules of planned savings and investments.
a) Factors that can cause the equilibrium interest rate to change include changes in:
Consumer preferences: If individuals decide to save more due to changes in their preferences, the planned savings schedule would shift to the right, leading to a lower equilibrium interest rate. Conversely, if preferences shift towards consuming more, the planned savings schedule would shift to the left, resulting in a higher equilibrium interest rate.Investment opportunities: If there is an increase in profitable investment opportunities, businesses may increase their planned investment, shifting the investment schedule to the right and lowering the equilibrium interest rate. On the other hand, a decrease in investment opportunities would shift the investment schedule to the left, increasing the equilibrium interest rate.b) Assuming the interest rate is 6% if the equilibrium interest rate needs to be restored, we can look at the planned savings and investment schedules. If planned savings exceed planned investment, indicating excess savings, the equilibrium interest rate would be lowered. To restore equilibrium at 6%, there would need to be an increase in planned investment or a decrease in planned savings until the two schedules are in balance.
c) Assuming the interest rate is 11% if the equilibrium interest rate needs to be restored, we would again examine the planned savings and investment schedules. If planned investment exceeds planned savings, indicating a shortage of savings, the equilibrium interest rate would be increased. To restore equilibrium at 11%, there would need to be a decrease in planned investment or an increase in planned savings until the two schedules are in balance.
In summary, the equilibrium interest rate is determined by the interaction of planned savings and planned investment. Changes in consumer preferences and investment opportunities can shift the schedules, affecting the equilibrium interest rate. To restore equilibrium at a given interest rate, adjustments in planned savings and investment need to be made until the two schedules are in balance.
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You are in charge of purchasing supplies for a lighting company and need to buy 125 feet of electrical wire. A local supplier sells the wire for $1.25 per foot, plus 5% sales tax. An online company sells the wire for $1.75 per foot. The online company also offers a rebate of 10% for the whole order and charges no additional sales tax. If you choose the better of the two prices, how much will you pay for the 125 feet of wire?
Answers
Answer:
$164.06 for the 125 feet
Explanation:
total costs from brick and mortar store = ($1.25 x 1.05) x 125 feet = $164.06
total costs from online store = $1.75 x (1 - 10%) x 125 feet = $196.88
after you compute the total costs per store, you should purchase the electrical wire from the brick and mortar store
from a marketing perspective, which is the preferred budgeting process? group of answer choices percentage of sales method affordable method competitive parity method objective and task method
Answers
The objective and task method is the preferred budgeting process from a marketing perspective. This method involves setting specific objectives and then determining the tasks necessary to achieve those objectives.
The budget is then developed based on the estimated costs of those tasks. This method allows for a more strategic and targeted approach to budgeting, ensuring that resources are allocated in a way that aligns with the overall marketing goals.
While other budgeting methods such as the percentage of sales method, affordable method, and competitive parity method may be simpler or easier to implement, they do not necessarily take into account the specific needs and goals of the marketing plan. The objective and task method provides a more comprehensive and effective approach to budgeting for marketing activities.
This method is preferred because it ensures that marketing efforts are aligned with the company's goals and that the budget is allocated efficiently to meet those goals.
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true or false: partners in a profitable communal relationship primarily focus on scrutinizing their personal profits
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Partners in a profitable communal relationship primarily focus on scrutinizing their personal profits. This statement is false.
In close partnerships known as communal connections, partners put aside their needs for reciprocity and exchange, supporting the other person in order to meet their needs without taking their own interests into account. Exchange relationships, in which each partner keeps track of his or her contributions to the partnership, are contrasted with communal partnerships.
To put it simply, partners in long-lasting relationships are conscious of each other's needs and make an effort to address them fairly. However, partners in the happiest partners are also able to see beyond their own benefits and consider the relationship in a communal way.
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____ refers to how costly it is for a firm to alter its strategic and organizational decisions.
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"Switching costs" refers to how costly it is for a firm to alter its strategic and organizational decisions.
Switching costs are the expenses and challenges that a firm incurs when it decides to change its strategic or organizational decisions. These costs can be both financial and non-financial in nature and are associated with transitioning from one option to another.
Financial switching costs may include expenses such as implementing new technologies, retraining employees, or modifying infrastructure. Non-financial switching costs can involve intangible factors like disruptions to relationships with suppliers or customers, loss of brand reputation, or the need to adapt to new processes and workflows.
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The value of information is directly linked to how it helps decision makers achieve their organization’s _____.
Answers
The value of information is directly connected to how it helps decision makers achieve their organization’s goals.
How to achieve organization’s goal?Organizational goals are strategic objectives that the management of a company sets in order to describe anticipated results and direct employees' efforts. Organizational goals can be divided into three categories: individual, team, and corporate. These objectives all have set deadlines for completion. These objectives frequently have longer time horizons than others.
Goals aid in the definition of a company's mission, promote corporate expansion, and help it meet its financial objectives. A corporation can monitor its progress and identify the tasks that need to be addressed to achieve those business goals by setting specific organisational goals. Organizational goals are quantifiable targets that are established to assist a company in achieving objectives like increased revenue, improved client satisfaction, a greater market share, staff retention, or innovation in the products and services it offers.
Hence, The value of information is directly connected to how it helps decision makers achieve their organization’s goals.
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A physical count of supplies on hand at the end of May for Masters, Inc. Indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplie s that should be recorded on May 31?
Answers
Answer:
Debit Supplies Expenses $850 and Credit supplies $850
Explanation:
Kimdly check attached picture for explanation
miller corp. can make three individual deliveries to three different customers at a transportation cost of $600 each or can consolidate them into one shipment with a transportation cost of $1,200 and a stop-off charge of $100 per stop. should miller corp. consolidate the shipments?
Answers
Miller Corp. should consolidate the shipments because it can save a total of $300.
What is consolidated shipping?Consolidated shipping is described as the form of a shipment process in which the cargo to be shipped is combined and that cargo is then delivered to each of the buyers or customers. It is an effective process that reduces the cost of the shipment and reduces damage to the cargo.
Given that,
Transportation cost of each cargo = $600
Consolidated cargo costs = $1200
Stop-off charge per stop = $100
Non-consolidated cost = 3 x 600 = $1800
Total charges for cargo consolidation = 3x100 + 1200 = 300 + 1200 = $1500
Hence, the difference between non-consolidated and consolidated cargo = $1800 - $1500 = $300
It can be concluded that Miller Corp. should consolidate the shipments because it can save a total of $300.
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marginal revenue function (in dollars) is given below. use numerical integration on a graphing calculator or computer to find the total revenue over the given range. MR(x)= 190/1+4e-0.7x -20, 0 ≤ x ≤ 310 the total revenue over the given range is approximately $ (round to the nearest cent).
Answers
The total revenue over the given range is approximately $39,291.23 (rounded to the nearest cent). To find the total revenue over the given range, we need to integrate the marginal revenue function from 0 to 310
This can be done using a graphing calculator or computer software that has numerical integration capabilities.
Using a graphing calculator, we can enter the marginal revenue function as follows:
MR(x) = 190/(1+4e^(-0.7x)) - 20
Then, we can use the "fnInt" function (found under "MATH" - "9") to integrate the function from 0 to 310:
fnInt(190/(1+4e^(-0.7x)) - 20, x, 0, 310)
This gives us a total revenue of approximately $39,291.23 (rounded to the nearest cent).
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The BEST way to validate a test: Select one:
a. Content Validity
b. Predictive Validity
c. Factor Analysis
d. Concurrent Validity
Answers
The best way to validate a test is through content validity.
Content validity is the extent to which a test measures the specific content or domain it is intended to measure. It involves examining the test items and assessing how well they represent the construct being measured. By ensuring that the test items are relevant, representative, and comprehensive, content validity provides strong evidence of the test's validity.
While other methods such as predictive validity, factor analysis, and concurrent validity can also be used in test validation, content validity is considered the most fundamental and essential. It establishes the foundation for a valid test by focusing on the alignment between the test content and the construct being assessed. By prioritizing content validity, test developers can ensure the test accurately captures the desired knowledge, skills, or abilities.
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reasons for bank faliure
Answers
Answer:
an imbalance of risk versus return,
failure to diversify,
offering products and services that management doesn't fully understand, and.
poor management of risks.
Explanation:
mark brainleist plz
The number of minorities in the workforce is?
Answers
Answer:
increasing
Explanation:
i got it from quizlet so if its not right im sorry i tried my best !!
Why is it so hard to find essentials during times of crisis?
Answers
Answer:
because they are in high demand because so many other people want them
What is the first step in financial planning?
OA. Analyzing the current situation
B. Identifying goals
C. Coming up with strategies for meeting goals
D.
Assess the advantages and disadvantages of different strategies
Answers
Answer:
A. analyze the current situation!
In the performance management process, which comes immediately after performance planning? Employee input Ongoing feedback Performance evaluation Performance review
Answers
In the performance management process, Performance Evaluation comes immediately after performance planning. Performance evaluation is the process by which an employee's performance is assessed and evaluated against predetermined objectives, expectations, or criteria set by the organization.
Performance Evaluation (PE) is a formal review process that takes place annually. It is the process of systematically and objectively evaluating an employee's work performance using set standards, performance objectives, or performance criteria. It is used to assess employees' performance against established standards, identify performance gaps, and provide feedback to employees on how to improve their performance. Performance evaluations are used to identify areas of improvement and to plan future employee development opportunities.The performance evaluation process has several steps, including the self-assessment of an employee, ongoing feedback, and a formal performance review. Performance feedback is an ongoing process that takes place throughout the year to give employees feedback on how well they are meeting expectations and goals set during performance planning. It is an essential part of the performance management process because it helps employees improve their performance.
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The WTO has a __________________ that rules on trade disputes, giving the WTO an enforcement mechanism, something the GATT did not have.
Answers
The WTO has a Dispute Settlement Body (DSB) that rules on trade disputes, giving the WTO an enforcement mechanism, something the GATT (General Agreement on Tariffs and Trade) did not have.
The Dispute Settlement Body (DSB) is a key component of the World Trade Organization (WTO) and serves as the forum for resolving trade disputes among member countries.
It is an enforcement mechanism that was introduced by the WTO, and it has a formalized process for settling disputes based on established rules and procedures. The DSB plays a crucial role in maintaining the rules-based international trading system by providing a forum for member countries to resolve trade disputes in a fair and transparent manner.
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in large organizations, it governance is achieved through an integrated of organizational groups that provide oversight in different areas.
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In large organizations, IT governance is achieved through an integrated system of organizational groups that provide oversight in different areas. These groups work together to ensure that organization's IT systems are aligned with its overall goals and objectives.
Here is a step-by-step of how IT governance is achieved in large organizations:1. Formation of governance committees: Large organizations typically have governance committees that are responsible for overseeing IT governance. These committees consist of key stakeholders from various departments within the organization, such as IT, finance, and operations.
2. Establishing IT policies and procedures: The governance committees work together to develop and establish IT policies and procedures. These policies and procedures provide guidance on how IT should be managed within the organization and ensure compliance with industry regulations and best practices.
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This type of forecasting uses independent variables other than time to predict future demand. This independent variable must be a leading indicator, for example, using rain to forecast sales of umbrellas.
Answers
The process of demand forecasting uses independent factors to predict future requests.
What does it mean to anticipate demand?The process of predicting future customer demand over a given time frame is known as demand forecasting.Demand forecasting typically utilizes historical data and certain other analytical information to obtain the most accurate estimates.Demand forecasting entails the process of obtaining information on various market circumstances including demand based on previous data in order to forecast future demand.What different types of demand forecasting exist?Using past sales data, demand forecasting generates projections about upcoming sales data. As a result, you will be able to answer client requests and make wise business decisions. Demand helps with the analysis of the industry's inventory level, SKU high quantity, overall sales, etc revenue for the a subsequent date.
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what things should be considered while running a business?
Answers
Answer:
-::Bussiness ii Dea
-::CusTomers
-::Competition
-::LocaTiion
-::CompeTiTiion
-::STaff
-::sTarT up CosT
CapiiTaL and Fiinance
Explanation:
-::The firsT Thiing as First-Your CusTomer.Yes,they are mosT imporTanT parT of Your entrepreneurial Life,and TheY are The Person who WiLL TeLL You WhT You need To do FoR Them.That's The basic FormuLa To Succes.
-::SuppLiiers-iidenTify PotenTiaL SuppLiiers needed To Produce The Service or Goods You WanT To SeLL.
-::After considering all the capital and expense requirement, before you start operating, make sure you have the registrations needed to legalize your business.
analyse the impact of an enterprise using break even analysis to make business decisions
Answers
Answer:
Using break-even analysis in your feed and grain business can help you understand and examine the profit drivers of your business. It is a very useful tool that can help you understand how much you need to sell to cover your costs and how pricing, cost, and volume changes impact these needed sales.
5. Retailers use technology in stores and online to:
O A. Limit product selection
O B. Make tasks easier and faster to complete for employees and customers
C. Monitor all the places they are shopping
O D. Prevent customers from shopping
Answers
The answer is The answer is option [B]. For both employees and customers, make jobs simpler and quicker to accomplish Retailers use technology. Physical retailers can utilize touchscreen screens to create a more connected, interactive purchasing experience as retail outlets become more digital.
Retailers use technology:
In general, roughly six out of ten customers would want to purchase in-person with a retailer that incorporates technology to enhance the experience. The able to relate your offline and online worlds is the best thing about technology. Customers can explore, order, and pay online using digital kiosks, which also let shops display goods, interesting information, and advertising.
Payment processing is becoming faster because to contactless technologies. Customers can quickly pay for their purchases by tapping their credit card or mobile device on a payment terminal, leave the store, and return later. installations for payments.
The retail sector is being improved by technology in a variety of ways, from augmented reality and better consumer experiences to more accuracy and control over market information and inventory management. Digital tools and technologies used by traditional brick-and-mortar stores and e-commerce platforms in their supply chain and in-store operations are referred to as retail technology. It is central to how retail businesses are being transformed by digital technology.
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Banks in Ruritania have a required reserve ratio of 5%5% . Round all answers to one place after the decimal. What is the simple money multiplier
Answers
The simple money multiplier forb the banks is given as 20.
How to solve for the money multiplierThe increase in the supply of money is what is called the money multiplier. This is used to determine the supply of money in an economy because it is known to have an effect on the interest rate of the economy.
The formula for the simple money multiplier is given as;
1/R
Where R is the Required reserve ratio
In the question the given reserved ration is said to be 5%
Hence the calculation would be
1/5%
= 1/0.05
= 20
The simple money multiplier is given as 20
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Select the described workplace culture from the drop-down menu below.
* workplace culture emphasizes everyone being in agreement
* workplace culture emphasizes development of new skills
* workplace culture emphasizes reacting quickly to change
* workplace culture emphasizes accomplishing goals
Answers
Answer:
The workplace culture emphasizes everyone being in agreement.
Explanation:
The workplace culture emphasizes everyone being in agreement.
An organization should have a good work condition that should be create a good relationship and employee-employee and employer-employer relationship.
It should helped to everyone to achieve their organizational target.
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✔ Consistency-oriented
workplace culture emphasizes everyone being in agreement.
✔ Involvement-oriented
workplace culture emphasizes development of new skills.
✔ Adaptive
workplace culture emphasizes reacting quickly to change.
✔ Achievement-based
workplace culture emphasizes accomplishing goals.
Explanation:
answer on edge
a crafty operations manager has developed this decision tree to evaluate the alternatives for a planned expansion. if the probability of high demand is 0.6, what is the best course of action?
Answers
Compare the expected values and choose the alternative with the highest value, as that would be the best course of action.
Evaluate the alternatives for a planned expansionTo evaluate the alternatives for a planned expansion, a crafty operations manager has developed this decision tree.
If the probability of high demand is 0.6, the best course of action is to expand.
The probability of low demand is 0.4, and the cost of expanding when demand is low is 500,000.
The benefit of expanding when demand is low is 200,000, while the cost of not expanding when demand is high is 100,000.
The profit from expanding when demand is high is 700,000, while the cost of not expanding when demand is low is 300,000.
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