Answer:
$126
Explanation:
We can calculate the amount Mira can pay for the synthetic material per unit (refrigerator) and meet its profitability goal by deducting the estimated profit and then all the cost from the selling price per unit.
Selling price per unit $260
Less
estimated return (260x30%) = ($78)
Labor costs ($32)
Overhead costs ($24)
Material $126
Amount Mira can pay for Synthetic material per unit is $126
Answer:
a Value-Chain Analysis
Explanation:
A value-chain analysis is a model that helps to describe the full range of activities needed to create a product from the conception i.e. the procurement of raw materials, manufacturing functions, marketing and the distribution of the products which leads to an increase in production efficiency so that a company can deliver maximum value for the least possible cost.
Answer:
C. he was happy to learn that he would be given a loan to cover all college expenses.
Explanation:
A student that is given a loan to cover college expenses have to go for entrance counselling in order to receive appropriate orientation and he will also have to sign promissory note that he will return the loan given.
Answer:
Year Cashflow [email protected]% PV [email protected]% PV
$ $ $
0 (1,100) 1 (1,100) 1 (1,100)
1-8 47.4 5.3349 252.87 7.0197 332.73
8 1,000 0.4665 465.5 0.7894 789.4
NPV (381.63) NPV 22.13
Kd = LR + NPV1/NPV1+NPV2 x (HR – LR)
Kd = 3 + 22.13/22.13 + 381.63 x (10 – 3)
Kd = 3 + 22.13/403.76 x 7
Kd = 3 + 0.38
Kd = 3.38%
Explanation:
Cost of debt is calculated based on internal rate of return formula. In year 0, we will consider the current market price of the bond as cashflow. In year 1 to 8, we will consider the after-tax coupon as the cashflow. The after-tax coupon is calculated as R(1 - T). R is 6% x $1,000 = $60 and tax is 21%. Thus, we have $60(1 - 0.21) = $47.4. then we will discount the cashflows for 8 years so as to obtain the internal rate of return. The internal rate of return represents cost of debt.
