Calculate the forecast unit costs of product Y and product Z using absorption costing and marginal costing.

You are a Corporate Finance Manager at Quebec plc, a large manufacturing company that is listed on the New York Stock Exchange. Quebec plc is considering a major investment in a new production facility. Senior managers at the company have identified two options for the new production facility, project A and project B. According to company policy at Quebec plc, proposed investments must be evaluated using the following techniques: - Payback period - Accounting rate of return - Net present value Each project has an expected life of five years. Sufficient funding is available to finance only one of the projects. Quebec plc has a cost of capital of 16%. Assume that all cash flows occur at the end of the respective year. The new production facility will be used to produce two new products, product Y and product Z. The following information has been gathered in respect of these two products: The following information has been extracted in respect of these two products: You are a Corporate Finance Manager at Quebec plc, a large manufacturing company that is listed on the New York Stock Exchange. Quebec plc is considering a major investment in a new production facility. Senior managers at the company have identified two options for the new production facility, project A and project B. According to company policy at Quebec plc, proposed investments must be evaluated using the following techniques: - Payback period - Accounting rate of return - Net present value Each project has an expected life of five years. Sufficient funding is available to finance only one of the projects. Quebec plc has a cost of capital of 16%. Assume that all cash flows occur at the end of the respective year. The new production facility will be used to produce two new products, product Y and product Z. The following information has been gathered in respect of these two products: The following information has been extracted in respect of these two products