a) Cash inflows of $1787 will occur at the end of each year from years 1 to 5. Cash inflow of $6000 will occur at the end of year 5.

Required rate of return = current earning rate on savings = 7%

b) Maximum price would be the present value of the above cash flows.

Maximum price = $1787 x PVIFA (7%, 5) + $6000 x PVIF (7%, 5) = $1787 x 4.10019743589 + $6000 x 0.71298617946 = $11,604.97

Kubin Company's relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 unit its average costs per unit are as follows: Average Cost per Unit Direct materials 8. 80 Direct labor $ 5.80 Variable manufacturing overhead 3.30 Fixed manufacturing overhead $ 6.80 Fixed selling expense $ 5.30 Fixed administrative expense S 4.30 Sales commissions 2. 80 Variable administrative 2. 30 expense Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 29,750 units?" 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 29,750 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 31,500 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 28,000 units? (For all requirements, do not round intermediate calculations.)