Answer:
c. $24.00
Explanation:
The computation of the target cost is shown below:
Target cost = Selling price - (Selling price × profit margin)
where,
Selling price = $30
And, the profit margin is 20%
So, the target cost is
= $30 - ($30 × 20%)
= $30 - $6
= $24
Basically, by using the above formula, we can find out the target cost after considering the selling price and the profit margin
Answer:
II: Insurance marketing systems include; General Agencies, Branch offices managed by employees of the company, and Personal; Producing General Agents (PPGA's).
Explanation:
Every insurance company has branch offices that operate on different regional levels that are managed and operated by employees.
General agencies are responsible for receiving insurance applications and negotiating and negotiating contracts on behalf of the insurance company.
Producing general agents (PPGA's) is a type of insurance agent that usually provides services to more than one insurance company and whose main duty is to sell as many policies as they can.
Answer:
d. 42.90 hours
Explanation:
y = aQᵇ
y = average time to produce one more unit
a = the time it took to produce the first unit
Q = cumulative production
b = learning rate = [(log learning rate in %) / log 2] = -0.152003093
learning rate in % = 10.8 / 12 = 0.9 = 90%
cumulative quantity average hours per unit total hours
1 12 12
2 10.8 22.8
3 10.38 33.18
4 12 x 4⁻⁰°¹⁵²⁰⁰³⁰⁹³ = 9.72 42.90
Answer:
a. What is the PI if the discount rate is 20%?
profitability index = present value of cash flows / initial outlay
PI = $9,137.41 / $5,000 = 1.83
b. What is the NPV if the discount rate is 20%?
NPV = -$5,000 + $9,137.41 = $4,137.41
c. What is the IRR if the discount rate is 20%?
the discount rate is irrelevant when you are calculating the IRR, since the IRR is the discussion rte at which the NPV = $0
IRR = 55.23%
Explanation:
Initial Outlay -$5,000
Year 1 $3,000
Year 2 $3,500
Year 3 $3,200
Year 4 $2,800
Year 5 $2,500.
