1. FasTrac can purchase a new machine for $90,000 and receive $15,000 in return for trading in its old machine. The new machine will reduce FasTrac's manufacturing costs by 18000 per year for 4 years. What are the cash inflows for this investment?

a. 15000

b. 18000

c. 90000

d. 97000

e. 72000

2. Elliot Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 8 units of A per hour or 10 units of Z per hour, and it has 20,000 production hours available. Contribution margin per unit is $12 for A and $10 for Z. what is the most profitable sales mix?

a. 84000 units of a and 60000 units of z

b. 48000 units of a and 80000 units of z

c. 60000 units of a and 100000 units of z

d. 120000 units of a and 0 units of z

e. 0 units of a and 200000 units of z

3. Bandy Corporation owns a machine that manufactures lawn games. Production time for the croquet set is 10 units per hour and for the volley ball game is 8 units per hour. The machine's capacity is 1,500 hours per year.

Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 4,000 croquet sets and 10,000 volleyball games. Selling prices and variable costs per unit are shown below.

croquet set:

selling prices per unit: $75

Variable costs per unit: $42

volleyball game

selling prices per unit: $62

Variable costs per unit: $25

a. 15000 croquet set

b. 12000 volleyball games

c. 4000 coquet sets and 10000 volleyball games

d. 4000 croquet sets and 8800 volleyball games

e. 2500 croquet sets and 10000 volleyball games.