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The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously.The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously. The plant has a capacity output of 200,000 calculators per year, and the plant's manager regards 75 percent of capacity as the normal or standard output. The projected total variable costs for the normal or standard level of output are $900,000, while the total overhead or fixed costs are estimated to be 120 percents of total variable costs. The plant manager wants to apply a 20 percent markup on cost.
If California Instruments wants to add the pocket calculator to its own product line, what should be the transfer price of the pocket calculators?
A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $250 at signing. The car you like costs $6000. a) What is your effective annual interest rate
Assume that all other banks hold only the required amount of reserves. If First national decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase.
3-defective electric toothbrushes were accidentally shipped to a drug store called Clean brush items along with seventeen non-defective ones.
Suppose households consume 80% of their disposable income. The government is considering three actions to help increase GDP: increasing government spending, cutting taxes, or increasing fixed transfer payments. If the government increases transfer..
Solve the problem for I (income). The impact on income of an increase in government spending equal to 100. Using the original data, compute the impact of a decrease in taxes equal to 100. Explain why the results are different.
Suppose that a security costs $3,000 today and pays off some amount b in one year. Suppose that b is uncertain according to the following table of probabilities a) Calculate the return (in percent) fore each value of
One aspect of obtaining a college education is the prospect of improved future earnings in comparison to non-college graduates. Sharon Shay estimates that a college education has a $28,000 equivalent cost at graduation.
Owen runs a delivery business and currently employs three drivers. He owns three vans that employees use to make deliveries, but he is considering hiring a fourth driver. If he hires a fourth driver, he can schedule breaks and lunch hours so all thre..
Compute the elasticity for each variable and briefly comment on what that data gives you in each case.
if you borrow $5000 and agree to repay the loan in five equal annual payments at an interest rate of 11%. what will be the annual payment be what if you make the first payment on the loan at the end of second year
Compute the equivalent annual inflation rate, based on the US Consumer Price Index, for the period 1981 (when CPI was 90.9) to 1986 (when CPI was 109.6) estimate the Consumer Price Index in 1996, working from the 1987 CPI.
Given the government policy, how much will be sold on the private market, that is, how much will consumers buy without government purchases How much sugar will government purchase. Suppose the government gives a guaranteed minimum price for sugar o..
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