Assignment 2 (Chapters 5,6,8)

Chapter 5.1-8

In the current period, Blue Mountain Packers in Salmon Arm, British Columbia, had fixed costs of $228,000 and a total cost of $900,000 while maintaining a level of output of 6,720 units. Next period sales are projected to rise by 20%. What total cost should Blue Mountain Packers project?

Chapter 5.1-12

Last year, A Child's Place franchise had total sales of $743,000. If its total fixed costs were $322,000 and net income was $81,000, what was its contribution rate?

Chapter 5.2-6

Louisa runs a secretarial business part time in the evenings. She takes dictation or handwritten minutes and converts them into printed word-processed documents. She charges $5 per page for her services. Including labour, paper, toner, and all other supplies, her unit variable cost is $2.50 per page. She invested $3,000 worth of software and equipment to start her business. How many pages will she need to output to break even?

Chapter 6.1-10

Walmart purchased the latest CD recorded by Selena Gomez. It received a total discount of $10.08 off the MSRP for the CD, which represents a discount percent of 42%.

a. What was the MSRP?

b. What was the net price paid for the CD?

Chapter 6.2-12

The markup amount on an eMachines desktop computer is $131.64. If the machine regularly retails for $497.25 and expenses average 15% of the selling price, what profit will be earned?

Chapter 6.3-10

A Heritage Infusio deep frying pan is advertised at 70% off with a sale price of $39.99. What is the frying pan's regular selling price, and what markdown amount does this represent?

Chapter 8.1-12

If you want to earn $1,000 of simple interest at a rate of 7% in a span of five months, how much money must you invest?

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Chapter 8.2-10

An accountant needs to allocate the principal and simple interest on a loan payment into the appropriate ledgers. If the amount received was $10,267.21 for a loan that spanned April 14 to July 31 at 9.1%, how much was the principal and how much was the interest?

Chapter 8.3-6

An investor places $30,500 into a short-term 120-day GIC at the Bank of Montreal earning 0.5% simple interest. The maturity value is then rolled into another short-term 181-day GIC earning 0.57% simple interest. Calculate the final maturity value.

Chapter 8.4-16

A $12,600 promissory note was issued on March 13 with a term of 120 days. It acquired $541.37 of interest. What was the annual interest rate on the promissory note?

Chapter 8.6-12

12. A 182-day Province of Manitoba T-bill with a face value of $250,000 was issued 102 days ago, when the yield was 4.3%. What is its purchase price today if the current rate of return is 4.53%?

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Provide answers