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Question - McElroy Corporation's Olympia plant produces a module used in automobile manufacturing The company's practical capacity is 5,800 modules per week. The selling price is $530 per module. Production this quarter is 5,000 modules per week, and all of the modules produced are sold each week. Demand is expected to remain steady Total costs of production this week at the level of 5,000 modules were $340,000 of fixed costs plus $2,000,000 of variable costs. Suppose that a new customer's supplier has an emergency need for 1,300 modules to be delivered next week and that the plant cannot schedule overtime production. Consequently, McElroy would have to give up some of its current sales to fill the new order. Total selling and administrative costs would not change if McElroy accepts the order
Required - What is the minimum (floor) price that McElroy should charge for the new order?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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CAPM and Venture Capital
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