A specific model of computer servers are being sold by Company A for $26,900 each, offering trade discounts of 8% and 5% and by Company B for $35,800 each, offering trade discount rates of 13% and 3%. a. Which company offers the servers for a cheaper price? A B b. What further trade discount rate must the company with the higher price provide to match the lower price? 0.00 %

A specific model of computer servers are being sold by Company A for $26,900 each, offering trade discounts of 8% and 5% and by Company B for $35,800 each, offering trade discount rates of 13% and 3%. a. Which company offers the servers for a cheaper price? A B b. What further trade discount rate must the company with the higher price provide to match the lower price? 0.00 %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Bronco Truck Parts expects to sell the following number of units at the prices indicated under three different scenarios in the economy. The probability of each outcome is indicated. Outcome A B C Probability 0.20 0.20 0.60 Units 390 680 1,090 Total expected value Price $25 34 39 What is the expected value of the total sales projection?
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Leo Consulting enters into a contract with Highgate University to restructure Highgate's processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $80,000 and earn an additional $16,000 if Highgate achieves $160,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $160,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Transaction price for the contract
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Current Attempt in Progress Your answer is partially correct. Cullumber Company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,600 units at $30 each. Cullumber will incur additional costs of $1 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs $ Net income $ Reject $ $ Should Cullumber Company accept the special order? Cullumber company should accept V the special order. Accept 168000 112000 i 56000 $ $ Net Income Increase (Decrease) 168000 112000 56000
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pocket price calculation
Suppose you are the buyer for the housewares department of a department store. A number of vendors in your area carry similar lines of merchandise. On sets of microwavable serving bowls, Brand A offers a list price of $400 per dozen less a 35% trade discount. Brand B offers a similar set for a list price of $425 less a 42% trade discount. (a) Which vendor is offering the lower net price? Brand A Brand B (b) If you order 500 dozen sets of the bowls, how much money (in $) will be saved by using the lower-priced vendor?
ssume that Cane expects to produce and sell pplier has offered to manufacture and deliver 80,000 Alphas to Cane for a price of SH0 per unit. What is the financial advantage (disadvantage) of buying 80,000 units from the supplier instead of making those units? 10. Assume that Cane expects to produce and sell 50,000 Alphas during the current year A plher has offered to manufacture and deliver 50,000 Alphas to Cane for a price of S80p- unit. What is the financial advantage (disadvantage) of buying 50,000 units from the supplier instead of making those units? 11. How many pounds of raw material pre needed to make one unit of each of the two produeee 12. What contribution margin per pound of raw material is earned by each of the two produeten 13. Assume that Cane's customers would buy a maximum of 80,000 units of Alpha and 60 units of Beta. Also assume that the raw material available for production is limited to 160,000 pounds, How many units of each product should Cane produce to maximize…
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