At an interest rate of 0%, the present value today of $100 five years from now will be (select from the answers below)

The manager at the Sports Shop sells three types of sport products, small, medium, and large

Small Medium Large Sales $70,000 $100,000 $30,000 Variable costs 40,000 52,000 18,000 Contribution margin 30,000 48,000 12,000 Fixed costs: Avoidable 7,000 17,000 10,000 Unavoidable 8,000 10,000 6,200 Operating income $15,000 $21,000 ($4,200 ) The manager at the Sports Shop needs to determine if the large product needs to be dropped because it is reporting a loss. Compute the increase or decrease in operating income if the manager drops the large product and does not replace it. If the manager dropped the large product and rented out the space used to house the product for $10,000 per year, what is the increase or decrease in operating income? A) $1,000 increase; $6,000 decrease B) $2,000 decrease; $8,000 increase C) $3,000 increase; $10,000 decrease D) $4,000 decrease; $12,000 increase E) $5,000 increase; $14,000 decrease

Performance margin is equal to controllable fixed costs minus the contribution margin

Indicate whether the statement is true or false.