In​ 2011, Kendall​ Ford, an automobile​ dealership, spent​ $20,000 on a new car lift for its repair​ shop, $2,000 on a
1 answer:
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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:
The current dollar price assuming a par value of $1,000 is $ 1,213.95
Explanation:
The current price is computed as shown below:
The coupon payments will be as follows:
= (7.3% ÷ 2) × $ 1,000 (Since the payments are semi annual, hence divided by 2)
= $ 36.5
YTM will be as follows:
= (5.3% ÷ 2) (Since the payments are semi annual, hence divided by 2)
= 2.65%
N is computed as follows:
= (17 - 1 ) × 2 (Since the payments are semi annual, hence multiplied by 2)
= 32
So, the price of the bond will be as follows:
= Coupon payment x [ ] +
= $ 36.5 × [ ( 1 - ] / 0.0265 ] +
= $ 36.5 × 21.39526 + $ 433.0255
= $ 780.92699 + $ 433.0255
= $ 1,213.95