(estimating the cost of bank credit) paymaster enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loan. the loan will carry a rate of 1616 percent per annum with interest paid in advance (discounted). in addition, paymaster must maintain a minimum demand deposit with the bank of percent of the loan balance throughout the term of the loan. if paymaster plans to borrow $120 comma 000120,000 for a period of 44 months, what is the effective cost of the bank loan? hint: assume the paymaster does not have sufficient funds in the bank to satisfy the compensating balance requirement.

Owns a machine that can produce two specialized products. production time for product tlx is two units per hour and for product mtv is four units per hour. the machine’s capacity is 2,100 hours per year. both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 3,570 units of product tlx and 1,610 units of product mtv. selling prices and variable costs per unit to produce the products follow. product tlx product mtv selling price per unit $ 11.50 $ 6.90 variable costs per unit 3.45 4.14 determine the company's most profitable sales mix and the contribution margin that results from that sales mix.