Baskets Inc. gathered the following actual results for the current month Actual amounts Units produced Direct materials purchased and used (7,400 lbs.) $44,400 5,100 Budgeted production and standard costs were Budgeted production Direct materials 4,700 units 3.5 lbs/unit at $5.00/lb What is the direct materials price variance? OA. $5,100 unfavorable OB. $5,100 favorable O C. $7,400 favorable O D. $7,400 unfavorable Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. It has budgeted $40,000 for this purchase Dandy's has naowed their choices down to teo: the Wacky Water Race game and the Whack-A-Mole game Financial Gata about the two choices folows Wacky Water $29.000 $10.000 right-ine 20,000 $9.000 straight-ine nvestment Esimated annual net cash infiows for 5 years Residual value Required ree of return Using the net present value model, which ahernativels) should Family Fun Park select? . Both investments should be selected. O B. The Whack-A-Mole game should be selected O C. The Wacky Water Race game should be selected O D. Nether investment should be selecled. Yalow Company's wanable expenses aro 40% of sales and have monthey fixed expenses et S 15,000 The monny target opening re whatis operating ncomef sales volume ncreases 10%? $3.600 whatwilow Congan 's operating leverage tactor at the target level of operating nearme? O A 124:$4046 O B. 5.17, $5,461 OC. 206:54.342 OD 0.19: $3.668 Mortar top golf co se pla nrgfor the coming season Investors would like to eam a 12% oebm onthe company's $50,000 0ofassets The com a ypm any non tand costs to goor the greens and tarways Faed costs are pr ected tobe $23.000.000 for the going season About 400 000 gatos ae expected each year Vaubte costs are about $20 per goto, Mourtaa top golf course has a favorable r taton inthe area and therefore, has some cortol over the price of a round of golt Using a cost-plus approach, what price should Mountaintop change for a round of go O A. $20 00 OB $77 50 O c. $92 50 O D. $140.00 OMaly Department Stores is considering two possible expansion plans. One proposal involves opening S stores in Indiana at the cost of $1,850 000. Under the other proposal, the company would foous on Keucky and open 6 stores at a oost $2,800,000. Tine following information is avaliable Indiana proposal Kentucky proposal Required investment Estinatedde Estimated residual Ife Estimated annual cash infows over the next 10 years Required rabe of return $1,850,000 10 years $60.000 $2.600,000 10 years $50.000 $800,000 10% OMaly shold choose II (Cick the icon to view the present value of$1 table.) O A. The Indian proposal which is $10,000 higher thatn Kentucky O B. The Kentucky proposal which is $750,000 igher than Indiana. O C. The Kentucky proposal which is $753,860 higher than Indana 0 D. The Indana proposal which is $75 3,060 higher than Kentucky
