Answer:
Attached is the solution:
Answer:
7%
Explanation:
Interest income if Curtis invested
250,000 x 9% = 22,500
After tax interest income = 22,500 - (22,500 x 24%)
= 17,100
After tax rate of return = 17,100/250000
0.068
Approximately 7%
Answer:
Check th explanation
Explanation:
2a.
Here, we will have to apply the economic production quantity as we have to identify optimal production quantity to minimize the cost.
Annual Demand D = 60000
Working Days = 240
Daily Demand d= 60000/240 = 250
Production Rate p = 300
Set up cost S = 150
Holding cost H = 3
Economic Production Quantity Q = (2DS/(H*(1-(d/p))))^(1/2)
Q = (2*60000*150/(3*(1-(250/300))))^(1/2)
Q = 6000 units
Answer:
6949 units
Explanation:
Given:
Estimated depreciation of the new project = $26,000
Fixed cost = $79,000
Total sales = $187,000
Estimated variable costs per unit = $11.80
let the break-even production be 'n'
Now,
the break-even point is achieved when there is no profit no loss
thus,
Profit = 0
Also,
Profit = Total sales - Fixed cost - (Total variable cost) - Estimated depreciation
or
0 = $187,000 - $79,000 - ( $11.80 × n) - $26,000
or
11.80 × n = 82000
or
n = 6949.15 ≈ 6949 units
