1.Baxter Grocery Store sells different types of laundry detergents. If All Clean laundry detergent has a sales price of$26 per bottle and the variable cost is$10 perbottle, what would be the contribution margin per linear foot of display space if a linear foot can display 3bottles?

A.

$26

B.

$48

C.

$78

D.

$30

2.Edward Hughes has just won the state lottery and has the following three payout options for aftertax prizemoney:

1. $168,000 per year at the end of each of the next six years

2. $310,000 (lump sum) now

3. $508,000 (lump sum) six years from now

The annual discount rate is9%. Compute the present value of the second option.(Round to nearest wholedollar.)

Present value of$1:

8%

9%

10%

1

0.926

0.917

0.909

2

0.857

0.842

0.826

3

0.794

0.772

0.751

4

0.735

0.708

0.683

5

0.681

0.650

0.621

6

0.630

0.596

0.564

7

0.583

0.547

0.513

A.

$406,400

B.

$676,000

C.

$101,600

D.

$31,0000