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Neporo4naja [7]
3 years ago
11

himada Products Corporation of Japan is anxious to enter the electronic calculator market. Management believes that in order to

be competitive in world markets, the price of the electronic calculator that the company is developing cannot exceed $15. Shimada’s required rate of return is 12% on all investments. An investment of $5,000,000 would be required to purchase the equipment needed to produce the 300,000 calculators that management believes can be sold each year at the $15 price. Required: Compute the target cost of one calculator.
Business
1 answer:
bixtya [17]3 years ago
7 0

Answer:

Sales (300,000 units × $15 per unit)                    $4,500,000

Less desired profit (12% × $5,000,000)                 600,000

Target cost for 300,000 units                                $3,900,000    

Target cost of 1 unit(3,900,000 / 300,000)                13

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Answer:

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Winter's Toyland has a debt-equity ratio of .57. The pretax cost of debt is 8.2 percent and the required return on assets is 14.
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Answer:

<em>WACC 10.995</em>

Explanation:

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6 0
3 years ago
Read 2 more answers
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a d
monitta

Answer:

If Mary and Tim specialize in the good in which they have a comparative​ advantage, ______.

Mary would specialize in making cakes while Tim would specialize in making pies.

Explanation:

a) Data and Calculations:

Mary's opportunity cost of making a cake = 2 pies

She can make additional 5 (10/2) cakes instead of making pies

This will increase her cakes to 25 a day (20 + 5)

Tim's opportunity cost of making a cake = 4 pies

She can make additional 40 pies (10 * 4) instead of making cakes

This will increase her pies to 60 pies a day (20 + 40)

When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.

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3 years ago
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