a. Stella sold 2,600 units at a price of $18 each last month. The total direct material cost per unit produced is $4. Fixed manufacturing overhead cost totaled $18,000. Commission to the salesperson was 10% of the sales revenue. What is the contribution margin for Stella?

Question 9 options:

	$13,720
	$6,752
	$26,750
	$15,650

b. A company is considering investing in a wind turbine to generate its own power. Any unused power will be sold back to the local utility company. Between cost savings and new revenues, the company expects to generate $200,000 per year in net cash inflows from the turbine. The turbine would cost $2 million and is expected to have a 20-year useful life with no residual value. Calculate the payback period.

c.A company is considering two projects that require the same initial investment. Project A has an NPV of $333,000 and a 3-year payback period. Project B has an NPV of $339,000 and a payback period of 4.5 years. Which project would you choose?