The interest cost of borrowing US $4,900,000 $5,000,000 98%) to take advantage of the discount is US $24,500 [$4,900,000 x 12% 15 - 360)], and the total cost will be US $4,924,500. The total cost if the discount is not taken will be 5,000,000, a difference of US $75,500.

P3uos total fixed costs are unaffected, the change in profit is the change in the contribution margin. The contribution margin at the current selling price is US $240.000 [75.000 units x $10 - $3 - $1 - $0.80 - $2)]. The contribution margin at the US $9.30 selling price is US $225,000 [90.000 units x $9.30 - $3 - $1 - $0.80 - $2)]. Hence, Profit will be reduced by US $15.000 $240.000 - $225.000) if the selling p11:, is lowered to US $9.30.

In this kind of system, applications use the same database There is no need to pass files between applications.

Working capital equals current assets minus current liabilities. The acid-test ratio equals quick assets current assets - inventory - prepaid expenses) divided by current liabilities.
Inventory a current asset) turnover equals cost of goods sold divided by divided inventory. The average collection period number of days' sales in accounts receivable, a current asset) equals the number of days in a year divided by the accounts receivable turnover net credit sales / average receivables). The foregoing are some of the many ratios that can be used to evaluate working capital management.

The learning curve reflects the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. Ordinarily, the curve is expressed in a percentage of reduced time to complete a task for each doubling of cumulative production. One common assumption in a learning curve model is that the cumulative average time (and labor cost) per unit is reduced by a certain percentage each time production doubles. Given a US $120 cost per unit for the first 100 units and a US $72 cost per unit when cumulative production doubled to 200 units, the learning curve percentage must be 60% (US $72 -$120). If production is again doubled to 400 units (four batches), the average unit labor cost should be US $43.20 ($72 x 60%). Hence, total labor cost for 400 units is estimated to be US $17,280 (400 units x $43.20).