Jason rents rooms in his hotel for an average of $100 per night. the variable cost per rented room is $20. his fixed costs are $
1 answer:
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Answer:
The minimum cost will be "$214085".
Explanation:
i) When quantity = 1-1500, price = $ 12.50 , and holding price is $12.50 * 20 %= $2.50.
ii) When quantity = 1501 -10,000, price = $ 12.45 , and holding price is $12.45 * 20 %= $2.49.
iii) When quantity = 10,0001- and more, price = $ 12.40 , and holding price is $12.40 * 20 %= $2.48.
know we should calculate the total cost of EOQ1 and break ever points (1501 to 10,000)units
The total cost is less then 15001. So, optimal order quantity is 1501, that's why cost is = $214085.
Answer:
Component cost of preferred stock is 11.4583 %
Explanation:
Given Data:
Preferred stock selling=96 percent of par.
Annual Coupon =11 percent
Required:
What would be Marme’s component cost of preferred stock?
Solution:
The formula we are going to use is:
Where:
is 11 percent annual coupon
preferred stock selling for 96 percent of par
If we convert the above percentage to dollar using the scale $1=1% then:
=$11
=$96
Component cost of preferred stock is 11.4583 %