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lyudmila [28]
3 years ago
13

Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid on a contract to

produce the slides for an eight-session class. From previous experience, you know that your firm follows an 85 percent learning rate. For this contract, it appears the effort will be substantial, running 50 hours for the first session. Your firm bills at the rate of $100/hour and the overhead is expected to run a fixed $600 per session. The finder will pay you a flat fixed rate per session. If your nominal profit margin is 20 percent, what will be the total bid price, the per session price, and at what session will you break even
Business
1 answer:
butalik [34]3 years ago
5 0

Answer:

Answer is explained in the explanation section below.        

Explanation:

To figure out the total bidding price, we must first figure out the total cost of all eight sessions.

To calculate the total expense, we must first determine the total number of hours required for each of the eight sessions.

Now that we know the learning rate is 85% and the first session took 50 hours, we can look up the coefficient of 8 under 85% in the learning curve table E3 and calculate it by the time spent on the first session. The average time taken for 8 sessions with an 85 percent learning curve would be the result.

Total time taken for 8 sessions = 50 x 5.936 (coefficient of 8 under 85% learning rate) = 296.8 = 297 hrs

Fixed cost = 600 x 8 = $4800

Variable cost = 100 x 297 = $29700

Total Cost = 29700 + 4800 = $34500

Total bid price = 34500 x 1.2 = $41400 (adding 20% profit margin on cost)

Price per session = 41400 / 8 = $5175

Break Even Session = 34500 / 5175

Break Even Session = 6.67

Hence, the total cost will be covered by the 7th session.

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A monopolist that practices perfect price discrimination has the same deadweight loss triangle as the single-price monopolist.
beks73 [17]

Answer:

The correct answer is the option B: False.

Explanation:

To begin with, the price discrimination strategy refers to a technique used by the companies in order to charge different prices to the different consumers regarding the fact of how much would they be able to pay for the product. When it comes to monopolies, a perfect price discrimination strategy would try as best as possible to capture the majority of the zone known as the <em>"consumer surplus"</em>. And that is why that a company with a perfect price discrimination would face a small deadweight loss area due to the fact that with that strategy of price the monopolist will absorve as much as possible of that area becuase the triangle is half consumer surplus and half producer surplus.

7 0
3 years ago
You plan to make a series of deposits in an interest-bearing account. You will deposit $1,000 today, $2,000 in 2 years, and $8,0
solniwko [45]

Answer:

$5,641

Explanation:

DEPOSIT NOW  

$1000 * FVIF 9%,8 PERIODS

= $1000 * 1.9926

= $1992.6

IN 2 YEARS

= $2000 * FVIF 9%,6 PERIODS

= $2000 * 1.6771

= $3354.20

IN 5 YEARS

= $8000 * FVIF 9%, 3 PERIODS

= $8000*1.2950

= $10360

WITHDRAWAL: IN 3 YEARS

= ($3000) * FVIF 9%, 5 PERIODS

= ($3000) * 1.5386

= ($4615.80)

IN 7 YEARS

= ($5000) * FVIF 9%, 1 PERIOD

= ($5000) * 1.0900

= ($5450)

Total value = $1992.6  + $3354.20 + $10360  - $4615.80 - $5450

Total value = $5,641

So, the total future value after eight years is $5,641

7 0
2 years ago
The financial statements of the larson company report net sales of $1,000,000 and accounts receivable of $80,000 and $60,000 at
stepan [7]
<span>To calculate the average collection period: the average accounts receivable balance divided by average credit sales per day. With $1,000,000 per year, that is $2739.73 per day. The average accounts receivable is ($80,000 + $60,000) / 2 = $70,000 $70,000 / $2,739.73 = 25.6 days</span>
4 0
3 years ago
wise guys consulting receives payment in full totaling $9,000 from a client for services which were rendered and invoiced the pr
Grace [21]

The impact at the time the payment is received is a Revenue $9000 increase with credit.

Turnover is the total amount of revenue generated from the sale of goods or services related to the company's main activities. Earnings, also known as total earnings, are often referred to as the "top line" because they are at the top of the income statement.

Revenue is the total revenue generated from the sale of goods and services related to the company's main activities. Commercial income is also called sales or earnings. Some companies derive their income from interest, royalties, or other fees.

Revenue represents income from business activities and profit represents net profit after deducting expenses from income. Earnings can take many forms, including B. Sales, Commission Income, and Property Income.

The Revenue is used as an indicator of income quality. There are several financial metrics related to this. The main ones are gross margin and profit margin. Businesses also use earnings to determine the cost of bad debts using the income statement method.

Account receivable $9000 increasea  with debit

Revenue $9000 increase with credit

Learn more about Revenue here:-brainly.com/question/16232387

#SPJ4

3 0
9 months ago
Item 1Item 1 Weismann Co. issued 11-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and
Mamont248 [21]

Answer:

Price of the bond is $940.

Explanation:

Price of bond is the present value of future cash flows. This Includes the present value of coupon payment and cash flow on maturity of the bond.

As per Given Data

As the payment are made semiannually, so all value are calculated on semiannual basis.

Coupon payment = 1000 x 11% = $110 annually = $55 semiannually

Number of Payments = n = 11 years x 2 = 22 periods

Yield to maturity = 12% annually = 6% semiannually

To calculate Price of the bond use following formula of Present value of annuity.

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$55 x [ ( 1 - ( 1 + 6% )^-22 ) / 6% ] + [ $1,000 / ( 1 + 6% )^22 ]

Price of the Bond = $55 x [ ( 1 - ( 1.06 )^-22 ) / 0.06 ] + [ $1,000 / ( 1.06 )^22 ]

Price of the Bond = $662.29 + $277.5

Price of the Bond = $939.79 = $940

8 0
3 years ago
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