Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fill in your calculations to each question. AFG communications, based out of Waterloo Ontario, is a small but growing manufacturer of business class network routers.
Fill in your calculations to each question. AFG communications, based out of Waterloo Ontario, is a small but growing manufacturer of business class network routers. Currently they produce two main types, Model A and the more expensive variant, Model B. The company has a capacity of producing 800 Model A routers per month and currently produces 450 every month which they sell to small computer stores in eastern provinces. The company's expenses are as follows: $6000 per month lease of production facility, salaries of $10500 per month and other expenses of $3000 per month. Production of each router costs AFG $10 in materials per router, $15 in labour per router and $10 per router for R&D. They sell their routers for $125. 1. Computrek has made arrangements with AFG to pay $40 000 May 1. a. What is the credited amount? $ b. What is the outstanding balance owing? $ 2. The 60 days elapses and Computrek is unable to pay the outstanding amount. They have outstanding loans of $12 000 which was due on March 1 and another $6 000 which is due on November 1, both at 6% interest. Computrek has made arrangements to payoff the two outstanding loans as well as AFG (use the date of payment May 1 for this and the year 2018 for the solution) at 6.5% interest on September 10. a. What will be the final payment amount on September 10 to satisfay all of Computrek's debts? $ Fill in your calculations to each question. AFG communications, based out of Waterloo Ontario, is a small but growing manufacturer of business class network routers. Currently they produce two main types, Model A and the more expensive variant, Model B. The company has a capacity of producing 800 Model A routers per month and currently produces 450 every month which they sell to small computer stores in eastern provinces. The company's expenses are as follows: $6000 per month lease of production facility, salaries of $10500 per month and other expenses of $3000 per month. Production of each router costs AFG $10 in materials per router, $15 in labour per router and $10 per router for R&D. They sell their routers for $125. 1. Computrek has made arrangements with AFG to pay $40 000 May 1. a. What is the credited amount? $ b. What is the outstanding balance owing? $ 2. The 60 days elapses and Computrek is unable to pay the outstanding amount. They have outstanding loans of $12 000 which was due on March 1 and another $6 000 which is due on November 1, both at 6% interest. Computrek has made arrangements to payoff the two outstanding loans as well as AFG (use the date of payment May 1 for this and the year 2018 for the solution) at 6.5% interest on September 10. a. What will be the final payment amount on September 10 to satisfay all of Computrek's debts? $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started