Answer:
The selling price is $99
Explanation:
The selling price of the product can be computed by adding required profit margin to the unit cost of the product.The required profit margin is the 10% return on invested assets.
Total variable cost $59*10000 =$590,000
Fixed expenses ($180,000+$60,000) =$240,000
desired profit margin(10%*$600,000) =$60,000
Total sales revenue =$990,0000
price per unit=$990,000/10000=$99
The cost-plus approach to product pricing gives $99
A cloud consumer is a person or organization that maintains a business relationship with, and uses service from, cloud providers.
Market because it promotes competition which in return lowers prices and increases quality
Answer:
$138.63
Explanation:
I used an excel spreadsheet and the NPV function to determine the present value of this annuity. The present value of this annuity is $138.63
Answer:
The option with the quarterly compounding provides a higher future value.
Explanation:
Giving the following information:
Initial investment= $7,000
Number of years= 4 years
<u>To calculate the future value, we need to use the following formula:</u>
FV= PV*(1+i)^n
<u>Quarterly compounding:</u>
Interest rate (i)= 0.07/4= 0.0175
n= 4*4= 16
FV= 7,000*(1.0175^16)
FV= $9,239.51
<u>Monthly compounding:</u>
i= 0.0685/12= 0.00571
n= 4*12= 48
FV= 7,000*(1.00571^48)
FV= $9,200.07
The option with the quarterly compounding provides a higher future value.
