Answer:
$404,000
Explanation:
Production Unit totals $135,000 plus $18,000 minus $14,000, resulting in $139,000.
The labor time for each unit is 30 minutes, equivalent to 0.5 hours.
The total labor hours equate to $139,000 multiplied by 0.5, giving 69,500 hours.
The variable overhead amounts to 69,500 hours multiplied by 5, resulting in $347,500.
Summing up the total overhead costs yields $347,500 plus $56,500, leading to a total of $404,000.
a) The finance charge totals $1,100. b) The APR stands at 9.75%. The amount needing to be financed comes to 11,000 - 4,000 = $7,000, while the total repayment equals 225 x 36 = $8,100. Thus, the finance charge is derived from the total repayment minus the financed amount, yielding $1,100. For part b), we apply the present value formula for annuities to determine the monthly interest rate i: Amount needing financing = (monthly installment x i) / [1 - (1+i)^-36], equating to 7,000 = (225/i) x [1 - (1+i)^-36], giving us i = 0.811%, which translates to APR = 12 x i = 9.732%.
