Consider a firm with market power that sells suits. the firm has two types of customers, a and b. there are an equal number of customers of each type. type-a customers are willing to pay up to $100 for a coat and up to $50 for a pair of pants. type-b customers are willing to pay up to $75 for a coat and up to $65 for a pair of pants. suppose for simplicity that the marginal cost of production is zero. if the firm engages in first-degree price discrimination, then it will(a) charge both types of customers $150 for a suit.(b) charge both types of customers $140 for a suit.(c) charge type-a customers $150 for a suit, and type-b customers $140 for a suit.(d) charge type-a customers $175 for a suit, and type-b customers $115 for a suit.

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false

Q3. loral corporation manufactures parts for an aircraft company. it uses a computerized numerical controlled (cnc) machining center to produce a specific part that has a design (nominal) target of 1.275 inches with tolerances of ± 0.020 inch. the cnc process that manufactures these parts has a mean of 1.285 inches and a standard deviation of 0.005 inch. compute the process capability ratio and process capability index, and comment on the overall capability of the process to meet the design specifications.