Answer:
Shopping product
Explanation:
Shopping products refer to those products which require considerable time, efforts in research, discussions and opinions and which are not purchased frequently.
Such products are purchased after careful evaluation of all the alternatives available to an individual and after comparison of prices and offers.
Consumers in such cases take considerable time in arriving at the buying decision, whether to buy or not, or to delay such purchases. Such purchases require research and significant efforts on part of the consumer.
Answer: Increase of $20,000
Explanation:
The cost of making a unit is:
= Direct material + Direct labor + Variable overhead + Fixed overhead
= 10 + 14 + 5 + 3
= $32
For 4,000 units that would be:
= 4,000 * 32
= $128,000
Cost of buying 4,000 units :
= Cost of buying + Fixed cost
= (4,000 * 30) + (3 / 2 * 4,000)
= $126,000
This cost is further reduced by the renting of the unused space:
= 126,000 - 18,000
= $108,000
Impact on profit:
= Cost of making - Cost of buying
= 128,000 - 108,000
= $20,000
Increase of $20,000
Answer:
2.69%
Explanation:
According to the scenario, computation of the given data are as follows,
Face value (FV) = $1,000
Time period = 5 years
Present Value (PV) = $1,438.04
Coupon rate = 14%
Payment (pmt) = 14% × $1,000 = $140
So, by using excel function find YTM, we get
YTM = 4.13%
So, After Tax cost = Rate ( 1 - tax rate)
= 4.13% ( 1 - 35%)
= 4.13% × 65%
= 2.685% or 2.69%
Excel function is attached below.
Answer:
9.49%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $190,100
cash flow each year from year 1 to 5 = $49,500
IRR = 9.49%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.