1. Lula Corp. has 28,000 units of old inventory that originally cost $56,000 to manufacture. It could be sold as scrap to a buyer in Brazil for $45,000 minus transportation cost of $0.15 per unit. Alternatively, the 28,000 units of inventory could be sold here in the USA for $87,000 if it is processed further at an additional cost. Lula processes the old inventory further and sells it in the USA. That decision results in an increase in Lulas net income of $7,500. Calculate the additional processing cost of the inventory that was processed further and sold in the USA (round to nearest $1).

2. Yelena Yogurt Co. makes yogurt in 6-ounce containers (units). A standard daily production run of 400,000 units (containers) uses direct materials (DM): 17,000 gallons of milk, 44,000 pounds of fruit at a standard price of $3.40 per pound and packaging that costs $0.02 per unit. The standard DM cost per unit (container) of yogurt is $0.52. Calculate the standard price per gallon of milk used to produce 400,000 containers of yogurt (round to $0.00).

3. An asset (investment) costs $112,000, has a ten-year useful life and a $12,000 residual value. The investment generates sales revenue $56,000 per year. Cash expenses related to this investment are expected to be around $27,000 per year, and straight-line depreciation expense for this asset is $10,000 per year. Calculate the average rate of return for this investment (round to 00.0%).