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to pay for his academic fees, Tarek, a college student, is selling a computer Accessory to other students. His cost to purchase each piece is

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to pay for his academic fees, Tarek, a college student, is selling a computer Accessory to other students. His cost to purchase each piece is 340, and he is planning to set the accessories for 5110 each. Faed costs for advertaling amount to (a) Compute the contribution margin (b) Compute the contribution rate (c) Compute the break-even point in units (d) Compute the break-even point in sales dollars. (a) The contribution margin per untis (Type a whole number) (b) The contribution rate in %. (Round to two decimal places as needed) (c) Therek even point in unit is (Round up to the newest unit) () The break-even point in sales dollars is (Round to the nearest cant as needed) The debt is amortized by equal payments made at the end of each payment interval Compute(a) the size of the periodic payments; (b) the outstanding principal at the time indicated: (c) the interest paid by the payment following the time indicated for finding the outstanding principal and (d) the principal repaid by the same payment as in parte Debt Principal Repayment Payment Conversion Period Interest Rate Outstanding Interval Period Principal After: $13,000.00 7 years 1 month semi-annually Sth payment (a) The size of the periodic payment is $0 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (6) The outstanding principal after the 5th payment in s (Round the final answer to the nearest centas needed. Round all intermediate values to six decimal places as needed) (c) The interest paid by the 6th payment is (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed) () The principal repaid by the oth payment is $0. (Round the final answer to the nearest cont as needed. Round all intermediate values to six decimal places as needed) A $150,000 issue of five-year bonds redeemablo at par offers 5.33% coupons payable annually. What is the premium or discount and the purchase price of the bonds to yield 72% compounded monthly (a) The (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The purchase price of the bond is (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed) A company has a policy of requiring a rate of return on investment of 15%. Two investment tamatives are available but the company may choose only one. Alemative offers a return of $35.000 at the end of your free. 176.000 the end of year even and $30,000 for eleven years. Alternative 2 wil return the company $1.200 at the end of each month for the next leven years. Compute in present value of each alternative and determine the pedalamative according discounted cash flow criterion The present value of Altemalive is (Round to the newest dofar as needed. Round all intermediate value to six decimal places as needed) The present value of Alternative 2 in 8 (Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed) The preferred choice is A company has a policy of requiring a rate of return on investment of 15%. Two investment aternatives are available but the company may choose only one. Aternative offers a rulum of $35.000 at the end of your three 576.000 at the end of year soven and $30,000 after eleven years. Alternative 2 will return the company $1,200 at the end of each month for next even years. Compute the present value of each wheretive and determine the preferred theme socording to the discounted cash flow criterion The present value of Altomative 11 (Round to the nearest dofar as needed. Hound all intermediate values to six decimal places as needed) The present value of Altomative 2$) (Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed) The preferred choice is A 20-year bond issue of 5,800,000 and bearing interest at 4% payable annually is sold to yield 3.7% compounded semi-annually. What is the issue price of the bonds? The purchase price of the bond is $ (Round the final answer to the nearest cont as needed. Round all intermediate values to six decimal places as needed.) Par Putters Company sells golf balls for $32 per dozen. The store's overhead expenses are 47% of cost and the owners require a profit of 25% of cost. (a) For how much does Par Putters Company buy one dozen golf balls? (b) What is the price needed to cover all of the costs and expenses? (c) What is the highest rate of markdown at which the store will still break even? (d) What is the highest rate of discount that can be advertised without incurring an absolute loss? (a) The cost of one dozen golf balls is $0. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The price needed to cover all of the costs and expenses is $ per dozen. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The highest rate of markdown is % (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) (d) The highest rate of discount is % (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed) A $160,000 mortgage is to be repaid over a 20-year period by end of the month payments rounded up to the next higher $100. Interest is 544% compounded semi-annually (a) Determine the number of rounded payments required to repay the mortgage (b) Determine the size of the last payment. (c) Calculate the amount of Interest saved by rounding the payments up to the next higher $100. (a) The number of monthly payments require to repay the mortgage is (Round up to the nearest whole number.) (b) The size of the last payment is $ (Round to the nearest cont as needed) (c) The amount of interest saved is $ (Round to the nearest cant as needed) Suppose a firm has two business options to choose from and has asked you, a Business Mathematica student, to help it make a decision Option "x" requires an immediate cost of $25.000 along with upgrade costs of 3.00 in year and $7,500 in year 6. The returns from these investments begin in year 2 and are estimated to be $3.000 per year for 3 years. 54.000 per year for the next years, and then 58.000 in years and respectively. The only run in year to a residen value of $6.000. Option "s" requires a cost today and in years 1 and 2 of $7,000 and has estimated returns beginning in year 4 and ending in year 10 of $6.000 per year. There will also be a residual value of 3.00 in year 10. Using Excel'IRR function, find the rate of Return for each of the two investment options available to the business based on the information given. Assume the business's expected rotum on investment is 15 percent. Which option would you recommend The rate of return on option Als (Round to the nearest whole number as needed.) The role of return on option is (Round lope nearest whole number as needed) should be recommended to the business because A $92,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 6.5% compounded semi-annually for a five-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the five-year term. (c) If the mortgage is renewed for a five-year term at 4% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The balance at the end of the five-year term is $0 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The size of the monthly payment for the renewal term is $ (Round the final answer to the nearest cont as needed. Round all intermediate values to six decimal places as needed.)

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