Answer:
Target cost is $13.60
Explanation:
Target cost is the competitive market minus the desired profit amount.In other words,the firm first of all establishes the market price which is acceptable to consumers,then deduct its desired profit in order to arrive at the target cost.
In the scenario,the competitive market price is $15
desired profit margin=required rate of return on investment*amount invested/planned number of calculators
required rate of return is 12%
amount invested is $6,020,000
planned number of calculators is 516,000
desired profit margin=12%*$6,020,000/516,000=$1.4
target cost=$15-$1.4=$13.6
The terms state there is a rent fee of 4% of sales up to $100,000 and 2.5% of sales over $100,000.
Monthly sales average $270,000. $250 Maintenance fee.
What is the average monthly rent plus maintenance fee?
($100,000)(0.04) = $4,000
($170,000)(0.025) = $4,250
Add the two amounts together = $4,000 + $4,250 = $8,250
Monthly rent averages $8,250 and the maintenance fee is $250 = $8,500/month.
Answer:
ke=0.1922
Explanation:
Where:
We=weight of common equity in the capital structure
ke=cost of equity
Wd=Weight of debt in the capital structure
kd= Cost of debt i.e yield to maturity on the bonds
t= tax rate.
Since WACC is estimated to be 14.8%
=0.192154
Answer:
"Single product" would be the correct response.
Explanation:
- A consolidated international territory has indeed been developed by the Single market which operates beyond immigration restrictions, including such barriers, usually applicable to transactions amongst nations.
- The above facilitates the free exchange of products across the territory or coalition, and even some resources including individuals.
So the above is the appropriate choice.
Answer:
Annual deposit= $6,952.82
Explanation:
Giving the following information:
You want to have $1.5 million in real dollars in a retirement account when you retire in 40 years.
Inflation rate= 2.7%
Interest rate= 10%
First, we need to deduct from the interest rate the inflation rate.
Real interest rate= 0.10 - 0.027= 0.073
Now, using the following formula, we can determine the annual deposit:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,500,000*0.073) / [(1.073^40)-1]
A= $6,952.82