1. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.10 per pound and costs $15.50 per pound to produce. Product D would sell for $44.10 per pound and would require an additional cost of $9.30 per pound to produce.

What is the differential cost of producing Product D?

a.$5.58 per pound

b.$9.30 per pound

c.$11.16 per pound

d.$7.44 per pound

2.

The expected average rate of return for a proposed investment of $632,400 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $218,840 for the 4 years is (round to two decimal points)

a.0.69%

b.17.30%

c.8.65%

d.0.35%

3.

The expected average rate of return for a proposed investment of $6,450,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $12,900,000 over the 20 years is (round to two decimal points).

a.20.00%

b.1.00%

c.40.00%

d.10.00%