You have just taken a job that requires you to move to a new city. in relocating, you face the decision of whetherto buy orrent a house. a suitable house costs $300,000 and you have saved enough forthe down payment. the (nominal)mortgage interest rate is 10% per year. and you can also earn 10% per year on savings. mortgage interest payments aretax deductible, interest earnings on savings are taxable. and you are in a 30% tax bracket. interest is paid or received, andtaxes are paid, on the last day of the year. the expected inflation rate is 5% per year. the cost of maintaining the house (replacing womout roofing, painting, and so on) is 6% of the value of the house. assumethat these expenses also are paid entirely on the last day of the year. if the maintenance is done. the house retains its fullreal value. there are no other relevant costs or expenses..9. what is the expected after-tax real interest rate on the home mortgage? b. what is the user cost of the house? c. if all you care about is minimizing your living expenses, at what [annual] rent level would you bejust indifferent betweenbuying a house and renting a house of comparable quality? rent is also paid on the last day of the year.

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below.a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below.a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02