I am stuck on this one please help ATTACHMENT PREVIEW
Get college assignment help at Smashing Essays Question I am stuck on this one please help ATTACHMENT PREVIEW Download attachment Screenshot (61).png Question 6 [1 point} 6. A 30-year bond with a face value of $1,009 currently sells for $?50. Which of the following statements is CORRECT? a] The bond’s current yield is equal to its coupon rate. b} If the yield to maturity stays constant until the bond matures, the bond’s price will remain at $150. c} The hond’s coupon rate exceeds its current yield. d} The band’s yield to maturity is greater than its coupon rate. e] The bonds current yield exceeds its yield to maturity.
Please see below related to Corporate Financing. (PLEASE SHOW WORK)
Question Please see below related to Corporate Financing. (PLEASE SHOW WORK) src=”/qa/attachment/8321842/” alt=”Capture2.PNG” /> ATTACHMENT PREVIEW Download attachment Capture2.PNG
What entity is charged with the task of providing answers
Question What entity is charged with the task of providing answers to “advanced questions”? />ComponentsMembers of CongressOSD StaffThe SECDEF
This question was created from Part 1_FINC 330 Project Descriptions_Research
Question This question was created from Part 1_FINC 330 Project Descriptions_Research Project Ratio Analysis.docx https://www..com/file/35587574/Part-1-FINC-330-Project-Descriptions-Research-Project-Ratio-Analysisdocx/ based on question 5, the company is Verizon wireless ATTACHMENT PREVIEW Download attachment 35587574-323883.jpeg -6- Develop a specific recommendation, with supporting rationale, as to whether the assigned company’s recent trends and results in financial performance is of sufficient financial strength, will THE COMPANY be financially sustainable over the next two to three years, and which steps should be done to improve its financial stability? (about 1 page) (15% of the project grade).
Castle, Inc., has no debt outstanding and a total market
Question Castle, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $36,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower. The firm is considering a debt issue of $155,000 with an interest rate of 6 percent. The proceeds will be used to repurchase shares of stock. There are currently 6,000 shares outstanding. Ignore taxes for this problem. a-1. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Recession $ Normal $ Expansion $ a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number, e.g., 32.) Percentage changes in EPS Recession % Expansion % b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EPS Recession $ Normal $ Expansion $ b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage changes in EPS Recession % Expansion %
- What are the key success strategies and characteristics of
Question
- What are the key success strategies and characteristics of ursula burns?
- How do you think these strategies and characteristics helped ursula burns be successful?
- In what ways could you use this information to become a more effective ursula burns yourself?
How do you calculate the amount of dividends just paid
Question How do you calculate the amount of dividends just paid when you know how much the stock currently sells for, the dividend yield and the dividend growth rate?
Please show step-by-step solutions for these questions:1) A property is
Question Please show step-by-step solutions for these questions:1) A property is sold for $200,000. Typical financing terms are an 85% loan with a 10% interest rate over 15 years. If the before-tax cash flow is $2,000, what is the overall capitalization rate?A) 10.96%B) 11.96%C) 19.13%D) 9.96%Answer: B2) A property is leased for $24,000 per year although market rents are currently $27,500 per year and are expected to increase by 2% per year. The property is expected to be sold at the end of year 10 based on a 10% terminal cap rate applied to the eleventh year NOI. The current lease on the property will expire at the end of year 10 so the property can be leased in the eleventh year at market rates. What is the value of the leased fee estate based on an 11.5% discount rate?A) $362,489B) $298,325C) $251,298D) $271,486Answer: C
Please show steps and explanations for this question. Thank you!
Question Please show steps and explanations for this question. Thank you! ATTACHMENT PREVIEW Download attachment Screen Shot 2019-07-02 at 12.02.11 PM.png Real Estate Finance Please show step-by-step calculations with explanations Income approach 1) Consider a building with a very long economic life. Assume at the end of year 6, N01 will be $80,000 and is expected to grow at a rate of 2 percent per year. Your company’s required rate of return is 12 percent. As part of your analysis, you must calculate the reversion value (REV) at the end of year 5, which would be: A) $571,429 B) $666,667 C) $800,000 D) $4,000,000 Answer: C
1.A U.S. five dollar bill is an example offiat money.M2.certificate
Question 1.A U.S. five dollar bill is an example offiat money.M2.certificate money.commodity money.standard money.2.As a result of a recession, citizens all over the nation are withdrawing their savings. As a result of this action, there will bea decrease in the supply of loanable funds.an increase in the quantity supplied of loanable funds.a decrease in the demand for loanable funds.an increase in the supply of loanable funds.an increase in the demand for loanable funds.3.Fiat money isan economic name for credit cards.held in federal reserve banks around the United States.backed by the government’s word.commodity-backed money.backed by gold.4.Meagan deposits $750 from her piggy bank into her checking account at Regions National Bank. The reserve requirement is 10% and the bank has no excess reserves.What is the immediate effect on the M1 measure of the money supply of her deposit? Explain why.What is the amount of money the local bank can lend? Explain how you arrived at your answer.Calculate how much money the entire banking system can create. Show your work.Give two reasons why money creation may not increase by the amount you identified in (c).(Calculate means show your work on the AP exam)5.If nominal GDP is $9,000 billion and the GDP deflator is 120, then real GDP is approximately$10,800 billion.$9,120 billion.$8,880 billion.$7,200 billion.$7,500 billion.6.A bank balance sheet shows the bank’sexcess and required reserves only.demand deposits only.assets and liabilities only.total reserves and investment purchases only.assets and what the bank owns only.7.If the required reserve ratio is 25%, the money multiplier is2.4.10.0.04.5.8.Which of the following is/are considered liabilities for a bank?Checkable depositsExcess reservesRequired reservesIII only.I and II only.I and III only.I only.II only.9.If the dollar price of the Argentine peso increases, how will U.S. imports from and exports to Argentina be impacted?Imports / ExportsDecrease / No changeDecrease / IncreaseIncrease / DecreaseIncrease / IncreaseDecrease / Decrease10.What is the value of M1 if the following is true?Coin and Currency: $80 million Demand Deposits: $190 million Savings Deposits: $400 million Traveler’s Checks: $10 million Time Deposits: $800 million$1,200 million$590 million$280 million$1,480 million$1,390 million11.In the past year, six new factories have been built in the Macro Islands that are operating at less than full capacity. Since the factories are still not operating at full capacity, there will bea decrease in the supply of loanable funds.an increase in the quantity supplied of loanable funds.an increase in the demand for loanable funds.a decrease in the demand for loanable funds.an increase in the supply of loanable funds.12.Velocity isthe number of times the average dollar is spent in a year.equivalent to real GDP.equivalent to the price level.equivalent to nominal GDP.another term for the money multiplier.13.With a reserve requirement of 20% and required reserves of $25,000, a bank has a total of$25,000 in demand deposits.$100,000 in demand deposits.$50,000 in checkable deposits.$125,000 in checkable deposits.$5,000 in checkable deposits.14.If you need $1,500 to make a down payment on a car next year and interest rates are 6%, the amount of money you need to deposit into the bank this year is$937.50.$1,415.09.$900.00.$250.00.$1,451.0015.The supply of loanable funds will increase ifgovernment spending increases.investors sell stocks and increase their money holdings.a personal income tax cut increases household saving.investors put more money in the stock market.low interest rates attract foreign investors.16.Assume a bank is fully loaned up. If its loans are $750, its total reserves are $250, and its demand deposits are $1,000, then the reserve requirement is25%.15%.5%.20%.10%.17.Ramon decided to purchase a new car that cost $38,000. He went to the bank, where he secured a fixed rate loan at 10% for a period of five years. The CPI is rising at a rate of 3% each year. The real rate of interest that Ramon will pay for his car loan in year 2 is25%.3%.10%.7%.13%.18.The most likely reason a business might choose to invest in a project would bebecause the rate of return on the project is higher than the interest rate.because they have extra money to invest.because the rate of return on the project is lower than the interest rate.to get more people interested in their products.to get a low interest rate.19.All of the following will occur if the government places an effective price ceiling on coffee excepta black market in coffee will flourish.there will be a surplus of coffee.there will be a shortage of coffee.vendors may discriminate in determining who gets to buy the coffee.the quantity supplied of coffee will be less than the quantity demanded of coffee.Description20.Assume a bank is fully loaned up. If its loans are $400, its total reserves are $100, and its demand deposits are $500, then the reserve requirement is25%.5%.20%.10%.15%.21.Some economists argue that trade restrictionsimprove allocative efficiency.increase trade between countries.are beneficial for at least one of the countries involved in trading.are instituted because of powerful lobbyists who demand them.improve productive efficiency.22.If April’s disposable income increases from $500 to $750 and her savings increases from $100 to $150, then her marginal propensity tosave is 5.consume is 0.2.save is 0.8.consume is 5.save is 0.2.23.Which of the following would cause velocity to decrease?An increase in public confidence in the economy increases.Workers are paid more often.Interest rates on checking accounts increase.Banks stay open for longer hours.Interest rates on credit cards increase.24.The demand for loanable funds will increase ifnet exports increases.low interest rates attract foreign investors.investors sell stocks and increase their money holdings.the government cuts expenditures.a personal income tax cut increases household saving.25.If you need $200 to buy a new iPhone
next year and interest rates are 2%, the amount of money you need to deposit into the bank this year is$100.00.$166.67.$196.08.$40.00.$40.08.26.”The ticket to the Fiesta Bowl will cost $750.” This statement best illustrates money used as aliquid asset.medium of exchange.store of value.unit of account.liability.27.Given the loanable funds market illustrated above, which of the following is most likely to be true of quantity demanded and quantity supplied of loanable funds if the government imposes an effective interest ceiling of 5%?Quantity Demanded / Quantity Supplied Increase / IncreaseIncrease / DecreaseDecrease / DecreaseIncrease / No changeDecrease / IncreaseDescription28.Assume the CPI increases from 100 to 110 and a person’s nominal income increases from $50,000 to $55,000 over the same period. This person’s real income hasincreased by 25%.increased by 5%.increased by 20%.remained the same.increased by 10%.29.If the quantity demanded of loanable funds is $10 million and the quantity supplied of loanable funds is $15 million, thenthe interest rate will rise.there will be a movement up the supply curve for loanable funds.the supply for loanable funds will shift right.the demand for loanable funds will shift left.the interest rate will fall.30.If the federal government decided to implement a special tax incentive to encourage household savings, we can expect thatsupply of loanable funds will increase.loanable funds will not be impacted by this action.supply of loanable funds will decrease.demand for loanable funds will increase.supply of loanable funds will decrease and demand for loanable funds will increase.31.Assume that national savings in the United States increases.Using a correctly labeled loanable funds graph and production possibilities curve, show and explain the impact of the increase in savings on each of the following.interest ratesLong-term economic growth for an economy producing capital and consumer goodsIf the interest rates in the rest of the world remain unchanged, explain the impact of the change you identified in part (a) the international value of the dollar.Based on your answer for part (b), explain what happens to imports and exports in the United States.32.If the President proposed increasing funding for schools and colleges across the United States as well as providing funding for health care for all Americans, we would most likely see an increase inshort-run aggregate supply.net exports.aggregate demand.long-run aggregate supply.unemployment.33.Apple
sells 40,000 iPods
that were produced last year, to new customers. As a result,GDP will increase for this year.the iPods
will decrease GDP for this year and count as inventory for last year.GDP will decrease for this year.the iPods
will increase GDP for this year and count as inventory for last year.last year’s GDP was increased by the inventory value of the iPods
, and this year’s GDP increases by the retail value of the iPods
less their inventory value from last year.34.Firms may invest in fewer projects as a result ofan increase in interest rates that increase economic growth.an increase in dividends that limit economic growth.a decrease in interest rates that increase economic growth.a decrease in interest rates that decrease economic growth.an increase in interest rates that decrease economic growth.35.If a decrease in personal income taxes increase aggregate income, then real interest rates willdecrease with a decrease in aggregate income.remain stable as the decrease in taxes offsets the decrease in aggregate income.increase with an increase in aggregate income.This is an incorrect answer. Have a nice day!remain stable as the decrease in taxes offsets the increase in aggregate income.36.If you use money as a unit of account, you would bewithdrawing $500 from your savings account.searching the Internet for a deal on a new computer.putting money in a savings bond.buying a new radio.returning a sweater to the department store.37.Suppose investors believe the economy will grow in the future. Which of the following best describes the impact of this belief on demand for loanable funds and interest rates?Loanable Funds / Interest rates Decrease / DecreaseNo change / IncreaseDecrease / IncreaseIncrease / IncreaseIncrease / Decrease38.After saving money in her piggy bank for three years, Beverly decided to deposit $5,000 of the money in the Millertown Bank. If the bank were fully loaned out and the reserve requirement was 20%, then the change in the dollar value of the total money supply would be$1,000.$25,000.$20,000.$4,000.$5,000.39.Banks may not be able to create the maximum amount of money from a new deposit as a result ofan increase in savings by consumers.the bank’s desire to make new loans.a decrease in the required reserve ratio.people’s desire to hold cash rather than re-deposit it in the bank.an increase in investment demand.Description40.Keynes believed all of the following are true, exceptthe economy is inherently stable.the government must be involved in the economy.wages and prices are sticky.the economy can experience a long period of recession.the economy is never at full employment of resources.41.After saving money in her piggy bank for three years, Linda decided to deposit $5,000 of the money in the Millertown Bank. If the bank was fully loaned out prior to the deposit and the required reserve ratio was 20%, then the additional dollar value that Millertown Bank could loan out as a result of Linda’s deposit would be$5,000.$20,000.$25,000.$4,000.$1,000.42.Which of the following will cause velocity to increase?Productivity decreases.People get paid more often.The price of goods increases.The money supply decreases.Interest rates increase.
What is the present value of $3,500 when 5.7% is
Get college assignment help at Smashing Essays Question What is the present value of $3,500 when 5.7% is compounded continuously for three years. I would like to use my HP 12c to calculate the answer. So, please include the keys used to solve this problem (continuous compounding) on an HP 12c calculator.
20. Columbia Trust wants itsannually, semiannually, and monthly compounded five-year
Question 20. Columbia Trust wants itsannually, semiannually, and monthly compounded five-year GICs all to have an effective rate of interest of 5.75%. What nominal annual rates should it quote for the three compounding options?21. What monthly compounded interest rate is equivalent to:a. 6% compounded annually?b. 6% compounded semiannually? (5.93)c. 6% compounded quarterly?22. You are offered a loan at a rate of 9% compounded monthly. Below what nominal rate of interest would you choose semiannual compounding instead? (9.17)
An analyst observes the following historic geometric returns: Asset Class
Question An analyst observes the following historic geometric returns: Asset Class Geometric Return Equities 8.0% Corporate Bonds 6.5% Treasury Bills 2.5% Inflation 2.1% 12. The real rate of return for corporate bonds is closest to: A. 4.3%. B. 4.4%. C. 4.5%. 13. The risk premium for equities is closest to: A. 5.4%. B. 5.5%. C. 5.6%. 14. The risk premium for corporate bonds is closest to: A. 3.5%. B. 3.9%. C. 4.0%.
Please Answer the following questions (Q2
Question Please Answer the following questions (Q2
explain briefly about the “Beating the market” with some examples.
Question explain briefly about the “Beating the market” with some examples.
Automaton, Incorporated (Automaton) is a small, U.S. publicly-traded software company
Question Automaton, Incorporated (Automaton) is a small, U.S. publicly-traded software company that manufactures quantum micro-processors to be used in the production of Artificial Intelligence-enabled (AI) computational devices. Over 90 percent of Automaton’s revenues are derived from one product: AI CalcPro IV, which is used exclusively in scientific calculators. Automation experienced double-digit revenue growth in the ten years since it was founded in 2005. In recent years, however, its revenue growth rate has averaged eight percentage points. The future is looking even less profitable: Wall Street analysts estimate Automaton’s revenue growth rate will decline to five percent, on average, over the next five years, and one percent thereafter. Fierce competition, including from foreign companies, is behind the decline in Automaton’s revenues. In particular, competition from U.K-based AI-CHIP, which was founded less than five years ago. AI-CHIP uses a more efficient manufacturing process to develop AI-enabled micro-processors that perform as well as Automaton’s, but costs about 20 percent less. Automaton’s market share in the AI-enabled micro-processor industry has declined from over 90 percent in 2010 to a little under 45 percentage points in 2018.DEFCON V AlertAt a recent meeting of senior managers, Automaton’s CEO, Sara Hwang, spoke of the need to innovate, reduce costs, and improve profitability. Specifically, she encouraged the senior management team to “think outside the box” in considering projects Automaton could undertake to stem its revenue decline. She noted “…with the support of the Board, I am willing to spend whatever it takes to increase our profitability.” Following the meeting, the general sentiment among Automaton’s senior managers was: if we do not make significant changes, Automaton may go out of business.In the following days, Automaton’s Chief Financial Officer (CFO) and Chief Operating Officer (COO) each proposed two projects: (1) an expansion project and (2) a cost reduction project.Kofi JohnsonKofi Johnson was recently hired by Automation to evaluate the two projects identified by Automaton’s senior managers. He intends to assess both projects using a combination of Payback Period, Net Present Value (NPV), and Internal Rate of Return (IRR). He makes the following mental note: “Payback Period accounts for Time Value of Money but does not consider cash-flows that occur after the initial outlay is paid. Therefore, it is effectively useless as a project evaluation tool.” In addition, as senior management is willing to fund multiple value-added projects, Kofi makes a second mental note: “Ms. Hwang mentioned that Automaton has no hard capital constraints. Consequently, I will recommend that we accept the two projects with the highest average IRR.”Automaton’s Weighted Average Cost of CapitalKofi’s manager, Marilyn-Jo Peters, advises him to begin his analysis by first computing Automaton’s Weighted Average Cost of Capital (WACC). To do this, she gives Kofi an exhibit with formulas and data needed to compute Automaton’s WACC. Kofi makes a third mental note: “If a company has no debt, its WACC (i.e., cost of capital) must be equal to its Cost of Equity.” Project 1: Expanding Existing CapabilitiesThe first project is to increase Automaton’s manufacturing capacity for five years. Automaton’s Chief Financial Officer, Patrick McCabe believes doing this would boost Automaton’s market share in the long run.To facilitate this temporary expansion, Automation will purchase new equipment for $1,500,000. The additional micro-processors will be manufactured in a building Automaton purchased eight years ago for $4,200,000. The building will be retooled for the new project at a cost of $500,000, including building permit fees of $25,000. The purchased equipment will be depreciated using Modified Accelerated Cost Recovery System (MACRS) depreciation schedule, and sold for $250,000 in year 5.The projected revenue for year 1 is $550,000. Subsequent year’s revenues will increase by eight percent of the preceding year’s revenues (i.e., year 2 revenues equals 1.08 * $550,000). This expansion project will result in an annual loss of revenues from an existing manufacturing operation of $100,000. Operating expenses (excluding depreciation and amortization) is estimated at 20 percent of net revenues. Operating net working capital will rise by $250,000 and $300,000 in years 1 and 2, respectively. This investment in net working capital reverses in the final year of the project. Annual interest expense is $35,000. Questions1. Is Kofi’s first mental note accurate? Discuss briefly.2. Is Kofi’s second mental note accurate? Discuss briefly.3. Is Kofi’s third mental note accurate? Discuss briefly.4. What is Automaton’s cost of capital?5. What is this project’s net income for years 1 through 5?6. What is this project’s Free Cash Flows (FCF) for years 0 through 5?7. What is this project’s NPV and IRR of this project?8. Kofi is concerned that the estimated cost of capital for Automaton is too high. He adjusts Automaton’s Beta and computes a new cost of capital of 5%. Using this, what is the project’s NPV and IRR?Project 2: Trimming the Fat to Boost ProfitabilityTo reduce production costs, Automaton’s COO, Christine Brady, suggests replacing one of its manufacturing equipment with a newer, more efficient model. This four year project will result in reduced manufacturing costs which, in turn, would allow Automation to reduce the price of its flagship AI CalcPro IV. Christine believes reducing the cost of the processor will better position Automation to compete with AI-CHIP.The current equipment, a MAC-98, can be sold today for $1,000,000 net. A brand-new MAC-125 retails for almost $3,250,000; however, Christine believes she can purchase it for $3,000,000. She intends to fund this purchase in part with proceeds from the sale of the MAC-98. In addition, accounts payable are expected to increase by $1,500,000 today, and fully reverse in year 4. The new equipment will be in operation beginning in year two. As the old equipment will be offline in year 1, Christine forecasts lost revenues of $550,000 in year 1. The cost savings in years 2, 3 and 4 are estimated at $600,000, $950,000, and $1,000,000, respectively. Automaton’s cost of capital and tax-rate remain unchanged.Kofi is particularly excited about this project and goes about evaluating it. He is a bit unclear about how changes in depreciation impact FCFs, and seeks guidance from Christine. Christine makes the following comment: “All else equal, higher depreciation expenses will result in larger FCF and lower net income. The specific impact can be discerned by multiplying the incremental depreciation expense by tax rate.”Questions1. What is the initial outlay for this project?2. What is this project’s FCF for years 1 through 4?3. What is this project’s NPV?4. Kofi (again) is concerned that the estimated cost of capital for Automaton is too high. He adjusts Automaton’s Beta and computes a new cost of capital of 5%. Using this, what is this project’s NPV?5. Is Christine’s comment on the relationship between depreciation and FCFs and net income accurate? Discuss briefly.6. Is Christine’s second comment accurate? Discuss briefly.ExhibitsMACRS 5 ScheduleYear 1: 20%Year 2: 32%Year 3: 19.2%Year 4: 11.52%Year 5: 11.52%Cost of CapitalWACC = Cost of Equity = Risk-Free Rate β *(Equity Risk Premium)After-Tax Cost of Debt = (1-Tax Rate) * Pre-Tax Cost of DebtRisk-Free Rate (10-Year U.S. Treasury) = 3%The Equity Risk Premium = 4.5%Tax Rate: 40%Automaton’s beta (β) = 1.2Automaton’s Market Value of Equity / Total Capital ratio = 100%Automaton’s Market Value of Debt / Total Capital = 0%
Your company is considering a machine that will cost $
Question Your company is considering a machine that will cost $ 5,311 at Time 0 and which can be sold after 3 years for $ 423 . To operate the machine, $ 372 must be invested at Time 0 in inventories; these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $ 969 /year for 3 years; variable operating costs (excluding depreciation) will be 38 percent of sales. Operating cash inflows will begin 1 year from today (at Time 1). The machine is in the 3-year MACRS class. The MACRS class has depreciation of 33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4. The company has a 34 percent tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project’s income is negative, and a 10 percent cost of capital. Inflation is zero. What are the total cash flows in year 2? Show your answer to the nearest $.01 Do not use the $ symbol in your answer. Please help
1. Home bias has a potential information-based explanation. Explain.2. What
Question 1. Home bias has a potential information-based explanation. Explain.2. What does the early evidence on the ability of behavioral Investing to enhance performance tell us? 3. What is an example of an anomaly that once reported in research studies has attenuated? Is this positive or negative from the standpoint of market efficiency?
Hi, question is attached. ATTACHMENT PREVIEW Download attachment Part 1
Question Hi, question is attached. ATTACHMENT PREVIEW Download attachment Part 1 Q1.PNG
- Research a payroll processing/outsourcing firm. Report the name of the
Question
- Research a payroll processing/outsourcing firm. Report the name of the firm and describe some of the functions this firm can perform for a company. Include a link to the firm’s website.
- Based on what you’ve learned in this chapter and using credible Internet sources, what are the pros and cons of outsourcing a company’s payroll function?
- Do you believe it is better to outsource a company’s payroll functions or perform those functions internally? Why?
A manufacturer, Phelan Inc., operating with excess capacity, has been
Question A manufacturer, Phelan Inc., operating with excess capacity, has been asked to fill a special order at a selling price of $18.25 per unit. The regular price is $20 per unit. No other use of the currently idle capacity can be found. The manufacturer’s usual variable costs per unit are $13.50 for direct materials, $2.50 for direct labor, $1.00 for variable overhead, and $0.75 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.85. Under the general decision rule, the minimum price per unit for this special order isA.$17.50B.$17.00C.$17.75
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