How much should you save today
Suppose you want to buy a car in 2 years that costs $6000 today. You are able to earn 9% a year in interest if you invest in mutual funds. If you expect inflation of 5% each of the next two years, how much should you save today?
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Gorham Manufacturing's sales slumped badly in 2010. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 600,000.
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A company has the choice of either selling 4,000 defective units as scrap or rebuilding them. They could sell the defective units at $2 per unit or they could rebuild them at additional costs of $.50 per unit for materials.
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The regular pattern of collection of credit sales is 20% in the month of the sale, 70% in the month following the month of the sale, and the remainder in the second month the month of the sale.
If sales of Pear Corporation totaled $500,000 for the current year (50,000 units at $10 each) and planned sales were $405,000 (45,000 units at $9 each), the affect of the unit price factor on sales is?
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