1.)

Assume that you are thinking about starting your own small business. You have made the following estimates regarding this opportunity: - You can rent a location for your business at a cost of $36,000 per year. - The equipment costs incurred to start the business would total $330,000. The equipment would have a 5-year useful life and a salvage value of $30,000. - Your compa ny's estimated sales per year would equal $350,000 and its variable cost of goods sold would be 30% of sales. - Other operating costs would include $6 0,000 per year in salaries. $4.000 per year for insurance. $25,000 per year for utilities, and a 3% sales commission. Based on these assumptions you estimate the project's simple rate of return to be 15%. However, after further consideration. you decide to revise your estimated salaries from $60,000 to $66,600an 11% increase. This increase in salaries will cause the simple rate of return to change by how much":| Multiple Choice O It will decrease by 5%. O It will decrease by 4%. O It will decrease by 11%. O It will decrease by 2%.Assume Division A has provided the following information regarding the one product that it manufactures and sells on the outside market Selling price per unit (on the outside market} $103.00 Variable cost: per unit $ 66.00 Fixed costs per unit (based on capacity) $ 10.00 Capacity in units 30,000 Division A has been offered the opportunity to sell 5.000 units of its only product to another division within the same company If Division A is currently selling 27,000 units on the outside market, what is the lowest acceptable transfer price for Division A if it were to sell 5,000 units to the other division? O $91.00 O $80.80 O $78.00 O $88.00