Reference no: EM131346202
Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:
Order processing cost per order $7
Additional costs if order must be expedited (rushed) $10.00
Customer technical support calls (per call) $12
Relationship management costs (per customer per year) $1200
In addition to these costs, product costs amount to 75% of Sales.
In the prior year, Wizard had the following experience with one of its customers, Chester Company:
Sales $15,000
Number of orders 160
Percent of orders marked rush 70%
Calls to technical support 80
Required:
Calculate the profitability of the Chester Company account.
Explain the computational steps of a net present value
: Explain the computational steps of a Net Present Value (NPV) calculation. What kind of information does NPV give a management team of a business and what kind of decision is made by management when it considers a project's NPV.
|
Creative computing sells tablet computer called the protab
: Creative Computing sells a tablet computer called the Protab. Indicated below whether each item is a separate performance obligation and allocate the transaction price of 80,000 Protab Packages to the separate performance obligations in the contract.
|
Hypothetical returns of large companies and T-bill
: Given the following hypothetical returns of large companies and T-bill between 2007 and 2012. Please calculate the average return and standard deviation of both large companies
|
What is the company float
: Purple Feet Wine, Inc., receives an average of $19,000 in checks per day. The delay in clearing is typically three days. The current interest rate is 0.019 percent per day. What is the company's float? What is the most Purple Feet should be willing t..
|
Calculate the profitability of chester company account
: Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs: Calculate the profitability of the Chester Company account.
|
Amortization method with equal annual payments
: Lucas borrows $4300 for 11 years. He can repay the loan using the following two methods: amortization method with equal annual payments of R at an annual effective interest of 6%. sinking fund method in which the lender receives an annual effective r..
|
What is net advantage to leasing
: Deep Mining, Inc., is contemplating the acquisition of some new equipment for controlling coal dust that costs $174,000. The equipment can be leased for $54,400 a year for 4 years. The firm can borrow money at 11.5 percent and has a 36 percent tax ra..
|
Suppose a particular investment project
: Suppose a particular investment project will require an initial cash outlay of $905,000 and will generate a cash inflow of $472,000 in each of the next three years. What is the project’s IRR? Suppose a company’s hurdle rate is 18%, should it accept t..
|
Firm is evaluating two investment proposals
: A firm is evaluating two investment proposals. The following data is provided for the two investment alternatives. Initial Cash Flow IRR NPV @ 18% Project 1 $250m 28% $80m Project 2 $50m 36% $20m Which project should the firm choose based on the IRR ..
|