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Assume that you are thinking about starting your own small business. You have mode the following estimates regarding this opportunity: - You can rent a

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Assume that you are thinking about starting your own small business. You have mode the following estimates regarding this opportunity: - You can rent a location for your business at a cost of $36,000 per year. - The equipment costs incurred to start the business would total $250,000. The equipment would have o 5 -year useful ife and a salvage value of $25,000 - Your company's estimated sales per year would equal $350,000 and its variable cost of goods sold would be 30% of sales. - Other operating costs would include $74,000 per year in saleries, $4,000 per year for insurance, $25,000 per year for uthities, and a 3% sales commission. The payback period for this investment opportunity is closest to: Multiple Choice 3.66 years: 2.62 years 4.22 years. 4,66 years. Assume a company is considering buying 10,000 units of a component part rather than making them. A supplier has agreed to sell the company 10,000 units for a price of $40 per unit. The company's accounting system reports the following costs of making the port One-half of the traceoble fixed manufacturing overhead relates to supervisory solaries and the remainder relates to depreciation of equipment with no salvage value. If the company chooses to buy this component part from a suppliec, then the supervisor who oversees its production would be discharged. If the company begins buying the part from a suppilec, it can use freed up capacity to produce and sell 2,350 more units of another product that earns a contribution margin per unit of $7.00. What is the financial advantage (disadvantage) of buying 10.000 units from the supplier? Multiple Choice $(23,550) $(32,350) $(60,000) Multiple Choice $(23,550) $(32,350) $(60,000) $(3,550)

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