In the first quarter of a year a computer manufacturer conducts a trial that sells a new
Question:
In the first quarter of a year a computer manufacturer conducts a trial that sells a new brand of laptop. For the trial they only produce 3,840 of the new laptops. Each of the new laptops costs $395 to manufacture. They set the selling price at $834. In the first quarter the manufacturer sells all of the new items and has a net income of $488,629 from the sales of the new items. For the second quarter the manufacturer decides to produce 11,400 of the new items and increases the selling price to $1,033. In the second quarter the manufacturer also sells all the new items and the total fixed cost does not change. What was the net income in the second quarter? Your answer should be correct to the nearest dollar.
Question 2 [5 points]
Cody wants to start a business printing custom logo T-shirts. The required equipment costs $2,700 and that each shirt will require $5.24 in materials. He estimates that he can sell 600 shirts in his first month of operations, and is hoping to recoup his equipment costs over that period. For full marks your answer should be rounded to the nearest cent.
- What must his contribution margin be to achieve this?
- What selling price does this correspond to?
Question 3 [5 points]
Mary puts $8,000 in a 3 month term deposit, earning a simple interest rate of 6.75%. After the 3 months, she then takes the present value (or principal) and the interest from the first investment and puts it in another term deposit with exactly the same conditions.
- What amount of interest would be earned on the first term deposit? For full marks your answer(s) should be rounded to the nearest cent.
- What amount of interest would be earned on the second term deposit? For full marks your answer(s) should be rounded to the nearest cent.
- What would the interest rate have to be on a 6 month term deposit to give the same return on Mary's money? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56%.
Question 4 [5 points]
Agnessa received the proceeds from an inheritance on April 17. She wants to set aside enough on April 18 so that she will have $16,000 available on October 14 to purchase a car when the new models are introduced. If the current interest rate on 91- to 180-day deposits is 3.75%, what amount should she place in the term deposit? For full marks your answer(s) should be rounded to the nearest cent. Click here for help computing the number of days between two dates.
Question 5 [3 points]
What payment 4 months from now is equivalent to a $2,900 payment today if money can earn 2.5% interest? For full marks your answer(s) should be rounded to the nearest cent.
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura