Show me howcalculator make-or-buy decision zion manufacturing had always made its components in-house. however, bryce component works had recently offered to supply one component, k2, at a price of $12 each. zion uses 4,400 units of component k2 each year. the cost per unit of this component is as follows: direct materials $7.20 direct labor 2.50 variable overhead 1.44 fixed overhead 4.00 total $15.14 the fixed overhead is an allocated expense; none of it would be eliminated if production of component k2 stopped. required: 1. what are the alternatives facing zion manufacturing with respect to production of component k2? 2. list the relevant costs for each alternative. if required, round your answers to the nearest cent. total relevant cost make $ per unit buy $ per unit differential cost to make $ per unit if zion decides to purchase the component from bryce, by how much will operating income increase or decrease? $ 3. conceptual connection: which alternative is better?

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

The purpose of the transportation approach for location analysis is to minimize which of the following? a. total costsb. total fixed costsc. the number of shipmentsd. total shipping costse. total variable costs

Anheuser-busch inbev is considering you for an entry-level brand management position. you have been asked to prepare an analysis of the u. s. craft beer industry as part of the selection process. prepare a 3-5 page report that includes a description of the industry’s strategically relevant macro-environmental components, evaluates competition in the industry, assesses drivers of change and industry dynamics, and lists industry key success factors. the company’s management also asks that you propose the basic elements of a strategic action plan that will allow the company to improve its competitive position in the market for craft beer. you must provide a heading in your report for each of the required elements of the assignment.