You deposit $15,000 at the end of each year in an IRA. The bank pays 2% APR, compounded daily. How much will be in the account when you retire in 35 years?
You need to borrow $65,000 for a new car. The annual interest rate is 12%, compounded quarterly. You will be making quarterly payments for three years.
1. What is your quarterly payment?
2. How much will you owe on the loan after you make the first payment?
3. How much will you owe on the loan after you make the 2nd payment?
The Doodad firm can produce either widgets or gadgets.
Widgets sell for $5.00. Widgets have a fixed cost of $15,000 and a per unit variable cost of $4.
Gadgets sell for $5.00. Gadgets have a fixed cost of $40,000 and a per unit variable cost of $1.00.
Calculate the breakeven point for Widgets and calculate the breakeven point for gadgets.
The Doodad firm can produce either widgets or gadgets.
Widgets sell for $5.00. Widgets have a fixed cost of $15,000 and a per unit variable cost of $3.00.
Gadgets sell for $5.00. Gadgets have a fixed cost of $35,000 and a per unit variable cost of $1.00.
Calculate the indifference point for widgets and gadgets AND interpret the results.
Gadget Incorporated expects total sales of $10,000.
The selling price per unit is $20.
The ordering cost is $5 per order and the inventory cost is $2 per unit.
Please answer all of the following questions:
A. What is the EOQ?
B. How many orders will be placed per year?
C. What is the total carrying cost?
D. What is the total ordering cost?
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