Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Suppose you are in the business of producing amenity kits for airlines. (a) It costs the factory to produce 1,500 kits costing $200 and

image text in transcribed

4. Suppose you are in the business of producing amenity kits for airlines. (a) It costs the factory to produce 1,500 kits costing $200 and 6,000 kits for $500. Each kit produced can be sold for $30; (b) The factory producing the kits is leased at five million dollars for 30 years at 5.12%; (c) You want to make ten million dollars at 6.12% over 40 years with monthly deposits; and (d) The contracted workers of the factory are paid 12% of the profits. Leading Question: How would you represent the above monthly situation? i. Find the break-even point for the model. ii. Suppose the second month: We want to make an extra half million dollars in 20 years at 12% compounded continuously. What does the second month's model look like? iii. Suppose the third month: The contract workers agreed to produce the kits at the same rate. Busi- ness is doing well, and each kit produced can be sold now for $40. How does the third month's model change? 4. Suppose you are in the business of producing amenity kits for airlines. (a) It costs the factory to produce 1,500 kits costing $200 and 6,000 kits for $500. Each kit produced can be sold for $30; (b) The factory producing the kits is leased at five million dollars for 30 years at 5.12%; (c) You want to make ten million dollars at 6.12% over 40 years with monthly deposits; and (d) The contracted workers of the factory are paid 12% of the profits. Leading Question: How would you represent the above monthly situation? i. Find the break-even point for the model. ii. Suppose the second month: We want to make an extra half million dollars in 20 years at 12% compounded continuously. What does the second month's model look like? iii. Suppose the third month: The contract workers agreed to produce the kits at the same rate. Busi- ness is doing well, and each kit produced can be sold now for $40. How does the third month's model change

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Accounting Cases Investigating Issues of Fraud and Professional Ethics

Authors: Jay Thibodeau, Deborah Freier

4th edition

78025567, 978-0078025563

More Books

Students also viewed these Accounting questions