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A company is preparing a quotation for a one-month consultancy project and socks your help in determining the relevant cost of one of the members of its project team. Currently the company employs the consultant on an annual salary of RM 36.000. In addition, the company provides the consultant with a company car which incurs running costs of RM 6,000 each year. The car will continue to be provided to the consultant whether this project is undertaken by the company or not. This consultant is fully employed on current projects and she were to be transferred to this new project, then an existing junior consultant would be used to cover her current work. The junior consultant would be paid a bonus of RM 5.000 for undertaking this additional responsibility 3 Another alternative that the company is considering is hiring an external consultant who has the necessary technical knowledge to work on the new consultancy project on a one month contract at a cost of RM 4,500 The relevant cost to be used in preparing the quotation is A RM3,000 B RM3,500 ? RM 4,500 D RM 5,000 1.4 A company has a nominal (money) cost of capital of 18% per annum. If inflation is each year, caluate the company sreal cost of capital to the nearest 001% 1.5 Acompany has estimated the selling prices and variable costs of one of its products as follows: 0.55 045 025 RM Probability RM Probability 40 0-30 50 60 0-25 40 0 20 Given that the company will be able to supply 1,000 units of its product each week irespective of the selling price, and that selling price and variable cost per unit are independent of each other, calculate the probability that the woody contribution will exceed $20.000 marks 16 A company is considering the pricing of one of its products. It has already came out some market research with the following results The quantity demanded at a price of RM 100 will be 1,000 units The quantity demanded will increase / decrease by 100 unts for every RM 50 decrease! Increase in the selling price The marginal cost of each unit is RM 35 Note that if Selling Price (P)-a-bx then Marginal Revenue – 2x Calculate the selling price that manises company profit

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