46. The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 6 years. The company uses a discount rate of 20% in its capital budgeting. The net present value of the investment, excluding the intangible benefits, is $454,420. (Ignore income taxes.) Addtional information:

PV of $1 factor 20%, 6 years .335; PV of Annuity factor 20%, 6 years 3.326.

How large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Multiple Choice

• $142,640

• $136,627

• $144,420

• $142,858

47. Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 41,000 units per month is as follows:

	Per Unit
Direct materials	$	43.10
Direct labor	$	8.20
Variable manufacturing overhead	$	1.20
Fixed manufacturing overhead	$	17.50
Variable selling & administrative expense	$	2.00
Fixed selling & administrative expense	$	9.00

The normal selling price of the product is $88.10 per unit.

An order has been received from an overseas customer for 2,100 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.30 less per unit on this order than on normal sales.

Direct labor is a variable cost in this company.

Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $75.20 per unit. The monthly financial advantage (disadvantage) for the company as a result of accepting this special order should be:

Multiple Choice

• $50,820

• $51,300

• $49,200

• $46,200