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A project requires an initial investment of $65,.000 and has a project profitability index of 0.311. The present value of the future cash inflows from
A project requires an initial investment of $65,.000 and has a project profitability index of 0.311. The present value of the future cash inflows from this investment is: Multiple Choice The Cook Corporation has two divisions-East and West. The divisions have the following revenues and expenses: East West Sales Variable costs Traceable fixed costs Allocated common corporate costs Net operating income (loss) $590,000 456,500 232,000 294, 30e 144,000 160,200 151,200 188,700 62,800 $ (186,700) The management of Cook is considering the elimination of the West Division. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income (loss) of: &Exit Submi Landor Appliance Corporation makes and sells electric fans. Each fan regularly sells for $32. The following cost data per fan is based on a full capacity of 144,000 fans produced each period. Direct materials Direct labor Manufacturing overhead (50% variable and 50% unavoidable fixed) $ 8 $10 A special order has been received by Landor for a sale of 20,000 fans to an overseas customer. The only selling costs that would incurred on this order would be $3 per fan for shipping. Landor is now selling 124,000 fans through regular channels each period. Assume that direct labor is an avoidable cost in this decision. What should Landor use as a minimum selling price per fan in negotiating a price for this special order
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