MATHEMATICS OF BUSINESS AND FINANCE (A) Company A and Company B sell the same model camera...

MATHEMATICS OF BUSINESS AND FINANCE

(A) Company A and Company B sell the same model camera for $105 and $135, respectively. During a sale, Company A offers a discount of 10% on the camera. What should Company B's rate of markdown be on the camera to match Company A's sale price?

(B) A dealer purchased machinery for $64,500.00 per unit. His overhead expenses are 30.00% of the cost and he desires an operating profit of 35.00% of the cost. During a sale, he offers a markdown of 30.00%.

a. Calculate the reduced selling price per unit. (Round to the nearest cent)

b. Calculate the break-even price. (Round to the nearest cent)

c. Calculate the profit or loss made per unit at the reduced selling price. Round your answer to two decimal places. Use a negative sign to represent a loss

Expert Solution

A.

	Company A	Company B
Selling Price	$105	$135
Discount	10.5	$40
Reduced Selling Price	$95	$95

Rate of Markdown by company B to match the selling price with company A

Discount that Company B have to allow = Company B selling Price- Company A Reduced Selling Price
Discount that Company B have to allow = $135-$95
Discount that Company B have to allow	=	$40

Percentage	=	29.63%

B.

Machinery	64500	64500
Overhead	30%	27642.85
Operating Profit	35%	32250.05


a. Reduced Selling Price per unit= Machinery Cost+Overhead+Operating Profit-Sales Discount
=(64500+27642.85+32250.05)*.7
87075.03

b. Break even Price
Break even Price = Machinery Cost+Overhead
=64500+27642.85
92142.85

c. Net Profit/Loss:
Sales Price	$124,392.90
Less Discount	$37,317.87
Discounted sales price	$87,075.03
Less Total Cost	$92,142.85
Loss	-$5,067.82

jeff jeffy answered 7 months ago

MATHEMATICS OF BUSINESS AND FINANCE Eric invested $1,250 at the end of every month into an...

MATHEMATICS OF BUSINESS AND FINANCE Eric invested $1,250 at the end of every month into an investment fund that was earning interest at 4.50% compounded monthly. He stopped making regular deposits at the end of 5 years when the interest rate changed to 4.75% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 5 years. b. Calculate the accumulated...

Salt Co. and Pepper Co. are in the same business and sell the same merchandise but...

Salt Co. and Pepper Co. are in the same business and sell the same merchandise but have different inventory systems: Salt’s is perpetual and Pepper’s is periodic. Both companies sell their products at a price of $10 each, and their inventory activity for March of 2020 is presented below. Salt Date Description # of Units Unit Price Total Cost 02/29/20 Beginning Inventory 50 $1 $50 03/08/20 Purchase 1 50 $2 $100 03/15/20 Sale 90 03/22/20 Purchase 2 50 $3 $150...

Digital Camera Prices The prices (in dollars) for a particular model of digital camera with 6.0...

Digital Camera Prices The prices (in dollars) for a particular model of digital camera with 6.0 megapixels and an optical 3X zoom lens are shown here for 8 randomly selected online retailers. Estimate the true mean price for this particular model with 89% confidence 183 215 244 237 175 238 208 241

discrete mathematics 1. Show that if a | b and b | a, where a and...

discrete mathematics 1. Show that if a | b and b | a, where a and b are integers, then a = b or a = -b. //Ex. 5, Page 208. 2. Show that if a, b, c, and d are integers such that a | c and b | d, then ab | cd. //Ex. 6, Page 208. 3. What are the quotient and remainder when a) 44 is divided by 8? b) 777 is divided by 21? f)...

Is it ethical for a company to sell water, which is basically all the same, in...

Is it ethical for a company to sell water, which is basically all the same, in a way that commands such high prices?

Draw BPMN diagram model on the business process for retailers to sell electricity to consumers in the...

Draw BPMN diagram model on the business process for retailers to sell electricity to consumers in the Open Electricity Market.

ZCM manufactures camera drones. The company currently has one existing model (ZC- 1G) on the market....

ZCM manufactures camera drones. The company currently has one existing model (ZC- 1G) on the market. Given the growing interest in aerial photography, the existing model (ZC- 1G) has been a success and the company is currently considering introducing a new model to replace the existing model. Prior to developing the new model, the company has conducted a survey to determine the features users are looking for in camera drones and try to incorporate these features in the new model....

ZCM manufactures camera drones. The company currently has one existing model (ZC1G) on the market. Given...

ZCM manufactures camera drones. The company currently has one existing model (ZC1G) on the market. Given the growing interest in aerial photography, the existing model (ZC1G) has been a success and the company is currently considering introducing a new model to replace the existing model. Prior to developing the new model, the company has conducted a survey to determine the features users are looking for in camera drones and try to incorporate these features in the new model. The company...

The A Company and the B Company are the only two firms that produce and sell...

The A Company and the B Company are the only two firms that produce and sell a particular product. The inverse demand curve for their product is: P=19-0.5Q where Q=QA+QB The companies have identical cost functions: TCA=3+QA TCB=3+QB a) Suppose that the two companies are owned by Cournot duopolists. Find the output produced by each firm and the market price. Very briefly explain the steps you take in your solution. b)Instead of the Cournot assumption, assume Company A sets its...

This week we will be studying the mathematics of finance. Most people take out a loan...

This week we will be studying the mathematics of finance. Most people take out a loan for making big purchases like a home or a car. People who have a balance on their credit card are borrowing money. Some investigation is often required to find the “Best Deal”. Please post your solution to one of the following problems: a) Calculate the amount of simple interest earned : $3,500 at 7% for 3 years b) Find the future value : $475...

Question