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# solution - lattu - Solution to 1 Sale price of the computer...

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Solution to 1 Sale price of the computer 245 Less: cost of the computer 105 markup 140 Percentage Markup 57.14% Lease Charges per month 8000 Breakeven (in units) =8000/140 57.14 or 58 units per month Calculation of Monthly Profit / Loss on sale of 400 computers Markup per computer 140 Total markup (400 x 140) 56000 Less: Monthly lease charges -8000 Profit 48000 Breakeven (if \$10,000 profit per month are required) =(8000+10000)/14 128.57 or 129 computers Produce 2500 computers but sell only 2000 computers Sales Revenue (2000 x 245) 490000 Less: COGS (2500 x 105) -262500 Contribution 227500 Less: Lease Charges -8000 Profit 219500 Solution to 2 Borrowed Amount 1100000 Period of the note 10 years APR 6.25% Monthly Payments 12,350.81 Annual Payments 151,229.96 Payment made during the life of loan 1,482,097.28 (if monthly instalm 1,512,299.64 (if yearly instalmen we are assuming that the company is making yearly payments and the amount that the company ou We have prepared the amortization schedule and with which we can easily see the amount of loan o

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## This note was uploaded on 05/13/2010 for the course MECH 17657 taught by Professor Ravikant during the Spring '10 term at Indian Institute of Technology, Delhi.

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solution - lattu - Solution to 1 Sale price of the computer...

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