Answer:
The lowest price that Division East will accept for the component is:
$1.48 per unit.
Explanation:
a) Data:
Variable product cost = $1.48
Full cost = $2.01 (Variable + Fixed costs)
Market price = $4.94
b) The variable product cost of $1.48 is the direct cost for producing the component, which includes the direct materials, direct labor, and direct overhead. The full cost of $2.01 includes other fixed costs (indirect materials, indirect labor, and indirect overhead), which cannot be directly traced to the component. The market price is the selling price, which includes the full cost and the profit margin (markup) which is added as compensation for the manufacturing effort.
Answer:
player 2 is signing a better contract
Explanation:
the present value of an annuity (player 1) = annual payment x annuity factor
assuming that the interest rate is 10%
present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million
player 2's contract
the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million
COMPLETE QUESTION:
Sarah’s Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following information to determine the best order size:
(The attachment contains the information)
Answer: 216 mufflers is the best order size.
Explanation:
The attachment contains the calculations and information.
Answer:
b. small nonprofit clinic for homeless people funded by a charitable organization
Explanation:
Public goods include un congested free ways. Small non profit clinic for homeless may become congested and when it is funded by charitable institutions it may be linked to some authorities. Public goods are for everyone