Capital Capacitors cost Prediction Assignment | savvyessaywriters.us
The company you work for, Capital Capacitors, makes a specialized capacitor. Cost data from six different sized production runs has been collected. The cost of each run is comprised of energy, materials, manpower and inventory costs.
Total Cost – Number of Capacitors in Run
Capital Capacitors will be producing 80,000 capacitors a month for the next year as part of a contract with a local aerospace company.
1. What is your predicted cost of a production run of 80,000 capacitors?
2. If each run of 80,000 capacitors is sold to the aerospace company for $120,000, what will be the end-of-the-year profit to Capital Capacitors if the nominal interest rate is 15% per year, compounded monthly?