Answer:
B) $8.80
Explanation:
Coronado's current variable costs = $408,000 / 68,000 units = $6 per unit
Since this special order wouldn't increase fixed costs, they should not be considered in this calculation.
What has to be considered are the additional $2,800 spent for shipping the goods = $2,800 / 3,500 units = $0.80 per unit
Coronado's total costs for this special order = $6.80 per unit
If it wants to earn a $7,000 profit for this order, that means that they will need to earn a profit of $2 per unit (= $7,000 / 3,500 units).
The unit price for this special order should be = $6.80 + $2 = $8.80
Answer:
4) buying and installing new computers in the new outlets
Explanation:
The five component model of information systems includes what a company needs to create is IT infrastructure and it includes:
- people: I firmly believe that people are the most important component of any system, at least until AI replaces us.
- hardware: refers to the equipment needed (e.g. computers, etc.)
- software: includes both system (windows or linux) and applications software (e.g. ERP software)
- database: the place where collected data is stored, e.g. physical storage devices or cloud storage
- network: the connections needed for different hardware to work together, e.g. cables, routers, internet service
The net present value of the proposed project is closest to -$80,822.
Since the project saves $80,000 in costs each year, we treat these savings income for the next 4 years. We then calculate the Present value Interest Factor of an annuity using the formula :
PVIF of an annuity = { [ 1 - [ (1+r)⁻ⁿ ] } ÷ r
PVIF of an annuity = { [ 1 - [ (1.09)⁻⁴ ] } ÷ 0.09
PVIF of an annuity = 3.240 (rounded to three decimals)
PV of the cost savings = (3.240*80000) = $2,59,178 (rounded to nearest $)
NPV = PV of cost savings - Value of investment
NPV = 2,59,178
- 3,40,000
If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.
