Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 1 (3 points) Saved All questions related to Safaricom are independent and the amounts and values in each question are different. Read the
Question 1 (3 points) Saved All questions related to Safaricom are independent and the amounts and values in each question are different. Read the question carefully each time. Safaricom makes two products: E-SIM and regular cell phone sim cards for Telecom providers. The regular sim cards sell for $9.1 each. Safaricom sells 989870 regular sim cards each year to Telecom providers. Safaricom's annual fixed costs for the regular sim card division is $649500 per year. The variable cost per sim card is $4.5. The total investment attributable to regular sim cards is $5040000. Safaricom has a minimum acceptable rate of return (required rate of return) on investment of 10.5%. What is the residual income for the year? Round your final answer to the nearest whole number (integer). Round interim calculations to 3 decimal points. Do not include any dollar signs, percentage % signs, commas, decimal places and/or spaces in your answer. Your answer should only include numbers. For example, if the correct answer is 1021, you should enter 1021 as your answer. If you enter $1021 or 1,021 or 1 021 or $1021.00, your answer will be marked wrong. For negative numbers, use a negative sign before the number e.g. -1021. Do not use brackets for negative numbers and do not leave a space between the negative sign and the number. Your Answer: 3850982 Answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the residual income for the year for Safaricoms regular SIM card division follow these ...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