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Likurg_2 [28]
2 years ago
5

Martin Enterprises needs someone to supply it with 120,000 cartons of machine screws per year to support its manufacturing needs

over the next five years, and you’ve decided to bid on the contract. It will cost you $795,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that, in five years, this equipment can be salvaged for $143,000. Your fixed production costs will be $435,000 per year, and your variable production costs should be $10.15 per carton. You also need an initial investment in net working capital of $70,000. If your tax rate is 21 percent and you require a return of 9 percent on your investment, what bid price should you submit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
ANEK [815]2 years ago
6 0

Answer:

The Bid Price you should submit is $15.45

Explanation:

NPV = -795000 + 143000*(1-21%)/1.09^5-70000 + 70000/1.09^5 + ((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5)

        => -795000 + 143000*(1-21%)/1.09^5 - 70000 + 70000/1.09^5 +((120000*(P-10.15) - 435000 - 795000/5)*(1-21%) + 795000/5)/0.09*(1-1/1.09^5) >=0

      =>P = 15.446118865171

Therefore, The Bid Price you should submit is $15.45

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Reil [10]

Answer:

What type of competitive growth strategy is Jessica's manager discussing?

c. product development

Explanation:

Most companies in business usually compete over the number of customers that they can gain over time, at times called the market share. The amount of market share a business has directly affects the sales and profit margins. The market share is a limited resource, therefor companies in business have to use various strategies to ensure that they have a proportional share of the market. A business that is just starting or that is relatively young, needs a growth strategy especially if there is an existing competition with a huge market share. Growth strategies are methods that small businesses can use to expand and develop thus increasing there market share. There are different strategies that could be used. Some examples are; market penetration, market expansion, product development and acquisition of other companies.

Let as consider product development as a competitive growth strategy. Product development involves all the steps towards developing a new product or re-branding the product to attract customers. The decision by Jessica's manager to utilize the firm's top-secret salsa recipe and packaging them into 16-ounce jars to sell at the restaurant to expand their market share is a form of product development strategy.

4 0
3 years ago
(True) or (False)? Goods in-transit to a buyer should be counted as buyer’s inventory if they were shipped FOB destination.
Artemon [7]

Answer:

Correct answer is FALSE

Explanation:

FOB Destination transfers ownership of the goods to the buyer after the goods reached to its destination (either in the buyer’s warehouse or any place stated in the contract to be delivered). Thus, goods in-transit under FOB destination still belongs to the seller and not to the buyer yet. Moreover, it should not be included to buyer’s inventory because the title of ownership of the said goods still belongs to the seller at the time of transit.

5 0
3 years ago
on may 1, there were 4 inventory items that cost $30 each. on may 5, 2 items were purchased for $35 each. given one item from th
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Based on the <u>specific identification inventory method</u>, the cost of goods sold would equal $65 ($30 + $35) and not $75 as indicated in the question.

Specific identification is an inventory costing method that tracks the cost of goods to the exact items that are sold.  This method is used where it is possible to track sold items individually, especially when the sold items are separately identifiable.

Specific identification is just one method in inventory costing.  Others are <em>Last-in, First-out (LIFO), First-in, First-out (FIFO), and Weighted-Average Cost Methods.</em>

Thus, the inventory method that will produce the cost of goods sold under this scenario is the specific identification method.

Learn more: brainly.com/question/17204604

5 0
2 years ago
A developer of a new townhome community estimates that there will be 1,400 home (all types) sales in University City over the ne
Vladimir79 [104]

Answer:

the developer's first-year projection of townhome sales in the new community is $40.04

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hence, the developer's first-year projection of townhome sales in the new community is $40.04

The same is to be considered

6 0
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