Cruise company produces a part that is used in the manufacture of one of its products. the unit manufacturing costs of this part, assuming a production level of 6,100 units, are as follows: direct materials $ 4.50 direct labor $ 4.00 variable manufacturing overhead $ 3.20 fixed manufacturing overhead $ 1.40 total cost $ 13.10 the fixed overhead costs are unavoidable. assuming cruise company can purchase 6 comma 100 units of the part from suri company for $ 14.20 each, and the facilities currently used to make the part could be rented out to another manufacturer for $ 24,000 a year, what should cruise company do? (round intermediary and final calculations to the nearest cent.)

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u. s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht. a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?