Question
1. You put $330 in the bank for 5 years at 12%. A. If interest is added at the end of the year, how much
1. You put $330 in the bank for 5 years at 12%.
A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Round your answers to 2 decimal places.
Year | Money in the bank |
1 | $___ |
2 | $___ |
3 | $___ |
4 | $___ |
5 | $___ |
B. Use the future value of $1 table and verify that your answer is correct. Round your future value factor to three decimal places and final answer to 2 decimal places.
$___
2. Zena Technology sells arc computer printers for $55 per unit. Unit product costs are:
Direct materials | $13 |
Direct labor | 21 |
Manufacturing overhead | 6 |
Total | $40 |
A special order to purchase 16,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?
$___ per unit
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