You are ready to retire. A glance at your 401(k) statement indicates that you have $750,000. If the
funds remain in an account earning 9.0%, how much could you withdraw at the beginning of each
year for the next 25 years?
A) $55,620 B) $35,830 C) $2,500 D) $70,050
D
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Melita Sailboats Company manufactures 100 luxury yachts per month
A compact media center is included in each yacht. Melita Sailboats manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $40,000 per month. If it outsources the media centers, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $4,000 per month of rental income. At what contract cost would outsourcing pay off for Melita? A) $520 per unit B) $480 per unit C) $280 per unit D) $400 per unit
During the year, Core, Rupt, and Baroque, Inc. had sales revenue of $13,200. For each of the following ranges of estimates provided, indicate which percent is the more conservative choice
a. Estimated sales returns range from 1 to 2% of total sales b. Bad debts are expected to be between 1 and 2% of net sales c. Estimated warranty costs are 1 to 2% of net sales d. Straight-line depreciation rate could be 10% or 20% for its buildings