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You decide to take out a 25-year mortgage for $375,000 at 5% APR. What is your monthly mortgage payment? What is the total amount of
You decide to take out a 25-year mortgage for $375,000 at 5% APR. What is your monthly mortgage payment? What is the total amount of interest (i.e., dollar value) you'll pay during the life of this mortgage? Keep four decimal places with your interest rate, e.g., 0.1234%. Hint: Don't calculate interest payment in each month individually. $ Question 5 (10 marks) Sticker Company makes five models of a hockey stick: Wood, Rubber, Plastic, Styrofoam and Platinum. Data for one unit of each type of stick follows: Wood Rubber Plastic Styrofoam Platinum Price $ 716.38 $ 928.20 $ 932.04 $ 973,565 929.84 Less variable expenses: Direct materials 196.00 $ 204.00 $ 216.00 $ 228.00 $ 236.00 Direct labour $ 98.00 $ 102.00 $ 108.00 $ 114.00 $ 118.00 Overhead $ 137.20 $ 142.80 $ 151.20 $ 159.60 $ 165.20 Total variable expenses 5 431.20 $ 448.80 $ 475.20 $ 501.60 5 519.20 Contribution margin $ 285.18 $ 479.40 $ 456.84 $ 471.96 $ 410.64 Direct labour workers are paid $10 per hour. Next quarter, the company has a capacity of 6,900 direct labour hours. There is unlimited demand for the company's products, so they can sell all that they produce. Part 1. In order to maximize contribution margin, which product should the company produce? A) Wood B) Rubber C) Plastic D) Styrofoam E) Platinum Part 2. If the company produces only one product, what is the maximum total contribution margin it can eam? A) $240,120 B) $285,660 C) $330,700 D) $291,870 E) $337,900 F $200,790 G) $324,300
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