1) Cost of new machine $500,000 Cash revenue per year $35,000 Expenses per year $20,000 Depreciation per year $5,000 What is the net cash inflow per year? A) $10,000 B) $5,000 C) $15,000 D) $35,000

2) A company produces bags. The cost of producing 800 bags is as follows: Direct Material $15,000 Direct Labor $7,000 Factory Overhead $5,000 Total manufacturing cost $27,000 Determine the product cost markup percentage for the bags. The selling and administrative expenses $24,000. Managements desires a profit of 15% of invested assets of $200,000 A) 200% B) 150% C) 175% D)25%

3. Aaron company is considering spending $100,000 for a new grinding machine. This amount could be invested to yield a 7% return. What is the opportunity cost? A) $93,000 B) $107,000 C) $7,000 D) $100,000

4. A company produced 3,500 units that require four standard gallons per unit at $34 standard price per gallon. The company actually used 14,400 gallons in production. Journal