Cruise company produces a part that is used in the manufacture of one of its products. the unit manufacturing costs of this part, assuming a production level of 6300 units, are as follows: direct materials $4.40 direct labor $4.30 variable manufacturing overhead $3.00 fixed manufacturing overhead $1.00 total cost $12.70 the fixed overhead costs are unavoidable. assume cruise company can purchase 6300 units of the part from suri company for $14.20 each, and the facilities currently used to make the part could be used to manufacture 6300 units of another product that would have an $13 per unit contribution margin. if no additional fixed costs would be incurred, what should cruise company do

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?