Answer:
1. Particulars Super premium Premium Economy
Material cost $16 $12 $10
Indirect cost (40000/10000) <u>$4 </u> <u>$4 </u> <u>$4</u>
Total cost $20 $16 $14
Profit (100% of total cost) <u>$20 </u> <u>$16 </u> <u>$14</u>
Selling price <u>$40</u> <u>$32 </u> <u>$28</u>
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2. Yes, the price calculated in part A takes into account what customers are willing to pay. This can be said because the company has the policy of adding 100% to the total cost. This means that the company knows that customers will be willing to pay that much amount.
<span>I took this before, it's a firm that is the sole, government-designated provider of electricity, and an example of a public enterprise is the government directly providing sewage service.
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Answer:
$4,775,565.49
Explanation:
The computation of the selling price of the bond is shown below:
Particulars Amount PV factor 6% Present value
Semi-annual interest $216,209 19.60044 $4,237,791.53
Principal $3,088,700 0.174110131 $537,773.96
Total $4,775,565.49
Working notes
Semi-annual interest $216,209 = $3,088,700 × 14% × 6 ÷ 12
PV factor 3%:
Semi-annual interest 13.76483115 = {(1 - (1.06)^-30) ÷ 0.06
}
Principal 0.174110131 = {1 ÷ 1.03^30}
The marginal benefit from the activity is equal to the marginal cost
