The following information applies to question 1.4: Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10000 units of this part are as follows: Of the fixed factory overhead costs, R30 000 is avoidable. 1.4 Assuming there is no other use of the facilities, calculate the highest price that Schmidt should be willing to pay for 10000 units of the part. The following information applies to question 1.10: 1.10 For each of the following, identify whether it BEST relates to market-based, costbased, negotiated, or all types of transfer pricing. a. Bargaining between selling and buying units b. Budgeted costs c. 145% of full costs d. Internal product transfers are required if goods are available internally e. Manufacturing costs plus marketing costs plus distribution costs plus customer service costs f. Prices listed in a trade journal g. Selling price less normal sales commissions h. Variable manufacturing costs plus a mark-up The Saldanha Bay Municipality in partnership with the Military Academy has opened a business centre. As part of this initiative, the students from the Military Academy are utilised in helping businesses with decision-making. You are requested to work out the following independent scenarios and give feedback to the business owners. The following information applies to questions 1.1 to 1.3 : Each of the following scenarios is independent. Assume that all cash flows are aftertax cash flows. a. Colby Hepworth has just invested R4 000000 in a book and video store. She expects to receive a cash income of R1 200000 per year from the investment. b. Kylie Sorensen has just invested R14000000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: R3 500 000; R4 900 000; R7 000 000; R4 200000 and R2 800000. c. Carsen Nabors invested in a project that has a payback period of 4 years. The project brings in R9 600000 per year. d. Rahn Booth invested R13000 000 in a project that pays him an even amount per year for 5 years. The payback period is 221 years. 1.1 Calculate the payback period for both Colby and Kylie. 1.2 How much did Carsen invest in the project? 1.3 How much cash does Rahn receive each year? The following information applies to question 1.5: Helmer's Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. Assignment 3 Due:25 October 2023 Marks The following per unit data apply: 1.5 If there are 496 machine-hours available per week, how many rockers of each model should Jim Helmer produce to maximize profits? The following information applies to question 1.9: Stephans Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Bill Company has contacted Stephans with an offer to sell them 5000 of the subassemblies for R22.00 each. Stephans will eliminate R25 000 of fixed overhead if it accepts the proposal. 1.9 Calculate the relevant costs for Stephans? The following information applies to questions 1.6 to 1.8 : Patterson Company is considering two competing investments. The first is for a standard piece of production equipment. The second is for computer-aided manufacturing (CAM) equipment. The investment and after-tax operating cash flows are as follows: Patterson uses a discount rate of 18% for all its investments. Patterson's cost of capital is 10%. 1.6 Calculate the NPV for each investment by using a discount rate of 18%. 1.7 Calculate the NPV for each investment by using a discount rate of 10%. 1.8 Which rate is the best for Patterson and why? The following information applies to question 1.11: Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of R8 000000 and an interest rate of 8%, and equity capital with a market value of R12 000000 and a cost of equity of 12%. 1.11 Calculate Springfield's weighted average cost of capital (WACC)