Baguio Coat Company estimates that 60,000 special zippers will be used in the manufacture of men's jackets during the next year. Zipper company has a quoted a price of PO.60 per zipper. Baguio would prefer to purchase 5,000 units per month but Zipper is unable to guarantee this delivery schedule. To ensure availability of these zippers, Baguio is considering the purchase of all 60,000 units at the beginning of the year. Assuming Baguio can invest cash at 8%, the company's opportunity cost of purchasing the 60,000 units at the beginning of the year is:

Black Diamond Company produces snow skis. Each ski requires 3 pounds of carbon fiber. The company’s management predicts that 5,500 skis and 6,500 pounds of carbon fiber will be in inventory on June 30 of the current year and that 155,000 skis will be sold during the next (third) quarter. A set of two skis sells for $350. Management wants to end the third quarter with 4,000 skis and 4,500 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $20 per pound. Each ski requires 0.4 hours of direct labor at $25 per hour. Variable overhead is applied at the rate of $13 per direct labor hour. The company budgets fixed overhead of $1,787,000 for the quarter.  Prepare the third-quarter production budget for skis.     BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter         Required units of available production       Units to be manufactured

Hyperion, Inc. currently sells its latest​ high-speed colour​ printer, the Hyper​ 500, for $371. It plans to lower the price to $318 next year. Its cost of goods sold for the Hyper 500 is $212 per​ unit, and this​ year's sales are expected to be 21,000 units.   a. Suppose​ that, if Hyperion drops the price to $318 ​immediately, it can increase this​ year's sales by 27% to 26,670 units. What would be the incremental impact on this​ year's EBIT of such a price​ drop?   b. Suppose​ that, for each printer​ sold, Hyperion expects additional sales of $78 per year on ink cartridges for the three​ years, and Hyperion has a gross profit margin of 61% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this​ year?

FAE Technologies is deciding whether it should begin production of a new toy robot. It has manufactured children’s toys before but nothing as advanced as its latest robot so historical data is at a minimum. The company believes that they can secure the materials for manufacture for between $65-85 per unit and labor costs would be between $15-25 per unit. Management’s expectations are that materials will cost $70 per unit and labor $25 per unit and that 800 units will be sold monthly. Should FAE decide to manufacture the robots in-house, maintenance of the factory machine would cost $15,000 per month. However, management has found that another alternative is for the company to outsource the labor for a flat rate of $35 per unit. The company expects to sell between 750-1000 units per month initially at a price of $149. Provide recommendations for FAE technologies that will maximize profit. Also include base, worst, and best case scenario calculations and provide a scenario summary. Be…