Back Bay Company is a price-taker and uses target pricing. Refer to the following information:

Production volume	602,000	units per year
Market price	$32	per unit
Desired operating income	15%	of total assets
Total assets	$13,700,000

What is the target full product cost per unit? (Round your answer to nearestcent.) Assume all units produced are sold.

A.

$32.00

B.

$4.80

C.

$27.20

D.

$28.59

A company is evaluating three possible investments. The following information is provided by the company:

	Project A	Project B	Project C
Investment	$240,000	$54,000	$240,000
Residual value	0	18,000	38,000
Net cash flows:
Year 1	62,000	34,000	98,000
Year 2	62,000	25,000	68,000
Year 3	62,000	21,000	78,000
Year 4	62,000	18,000	38,000
Year 5	62,000	0	0

What is the payback period for Project A? (Assume that the company uses the straight-line depreciation method.) (Round your answer to two decimalplaces.)

A.

2.87 years

B.

1.59 years

C.

3.87 years

D.

5.00 years