initial cash outlay is $150,000, no residual value. sales price is expected to be $2,250 per unit, with $595 per unit in labor expense and $795 per unit in materials. direct fixed costs are estimated to run $20,750 per month. cost of capital is 8%, and the required rate of return is 10%. they will incur all operational costs in year 1, though sales are expected to be 55% of break-even. break-even (considering only direct fixed costs) is expected to occur in year 2. variable costs will increase 2% each year, starting in year 3. sales are estimated to grow by 10%, 15%, and 20% for years 3 - 5. they have asked you to calculate: the product’s contribution margin break-even quantity

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

When it is 4: 00 a.m. in halifax, it is 1: 00 p.m. in karachi, and when it is 9: 00 a.m. in karachi, it is 5: 00 a.m. in warsaw. mary left halifax to fly to karachi, but she accidentally left her watch on warsaw time. according to mary’s watch, she left halifax at 9: 40 p.m. on monday. the local time when she arrived at karachi was 3: 00 p.m. tuesday. how long was mary’s flight? a. 9 hours, 20 minutes b. 13 hours, 20 minutes c. 14 hours, 20 minutes d. 17 hours, 20 minutes