Answer:
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Answer:
so value of the mistake is $311685.71
Explanation:
given data
present value = $1,200,000
time = 6 year
discount rate = 18%
discount rate = 8%
to find out
What is the dollar value of the mistake
solution
we get here present value that is express as for both rate that is
present value =
put here value
present value =
present value 1 = $444517.85
and
present value =
present value 2 = $756203.55
so
difference is $756203.55 - $444517.85
difference is = $311685.71
so value of the mistake is $311685.71
The question is incomplete. The complete question is :
A manufacturer believes that the cost function : approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the marginal cost goes beyond $210. What is the most units the manufacturer can produce and still make a profit? What is the total cost at this level of production?
Solution :
Given the cost function is :
Now, Marginal cost =
So, if the marginal cost = $ 210, then the manufacturer also makes a profit and if it goes beyond $ 210 than the manufacturer cannot make a profit.
Therefore, we have to equate :
So when x = 45, then C(x) = $ 8042.5
Therefore, the manufacturer to 45 units and This leads to a total cost of $ 8042.5
Answer:
Allocation rate Machining= $50 per machine hour
Explanation:
Giving the following information:
Estimated Machining cost= $4,000,000
Estimated Number of machine hours= 80,000
<u>To calculate the allocation rate for the Machining department, we need to use the following formula:</u>
Allocation rate Machining= total estimated costs for the period/ total amount of allocation base
Allocation rate Machining= 4,000,000 / 80,000
Allocation rate Machining= $50 per machine hour