Harmony is currently producing 100 component parts and incurring costs of $60,000 for direct materials, $12,500 for direct labor, $22,500 for variable overhead, and $15,000 for fixed overhead. If Harmony purchases these components from an external vendor, $10,000 of fixed costs would be eliminated.

What is the maximum amount that Harmony would be willing to pay the external vendor for these 100 component parts?

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%