Answer:
The amount of set-up cost allocated to each product:
Plus = <u>$2,250 x 19 set-ups</u>
380 units
= $112.50 per unit
Max = <u>$2,250 x 37 set-ups</u>
18,500 units
= $4.50 per unit
The correct answer is D
Explanation:
In order to obtain the amount of set-up allocated to each unit of Plus and Max, there is need to multiply the set-up cost per unit by the number of set-up for each product divided by number of each unit produced.
Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT=$800; i= 5%, n= 10
![Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05}](https://tex.z-dn.net/?f=%20Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E0%5D%7D%7B0.05%7D)
= 6,177.39
a2- ![Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.05%29%5E-%5E1%5E5%5D%7D%7B0.05%7D)
= 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1- ![Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D800%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E0%5D%7D%7B0.20%7D)
= 3,353.98
b2-![Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20}](https://tex.z-dn.net/?f=Present%20value%20%3D600%2A%5Cfrac%7B%5B1-%281%2B0.20%29%5E-%5E1%5E5%5D%7D%7B0.20%7D)
=2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
The most cost effective way for John to buy a house in the suburbs is:
a.Move to the suburbs and rent a house for one year before purchasing a home.
This is to test the waters. During this time, he has to acclimatize himself into living in a new environment. He has to discover the pros and cons of living in the suburbs compared to living in the city like travel time in going to work, etc.
If after a year, he finds its more beneficial to live in the suburbs, then he can buy a house there. On the other hand, if he finds it costly to live in the suburbs compared to living in the city, he simply has to pay the necessary rent and utility bills, pack up his bags, and go home.
Answer:
Ray calculated how much each seat cost to manufacture and set a wholesale price that covered expenses and earned a reasonable profit. After doing so, Ray developed a channel of distribution including wholesalers and retailers to get the theater seats to consumers.
Explanation:
