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for 15,000 units of product at Industries received an offer from an exporter 14. Stryker $17.50 per unit. The acceptance of the offer will domestic

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for 15,000 units of product at Industries received an offer from an exporter 14. Stryker $17.50 per unit. The acceptance of the offer will domestic sales prices. The following data is available: $20 Domestic unit sales price Unit manufacturing costs: Variable Fixed What is the amount of differential income or loss from acceptance of the offer? a. $97,500 income b. $94,500 loss c. $37,500 income d. $37,500 loss 15. Which of the following short-run decisions are made using the concept of differential analysis? a. Buy or make b. Special order c. Drop or delete a segment or division d. All the above 16. An anticipated purchase of equipment for $580,000 with a useful life of 8 years and no residual value is expected to yield the following annual net incomes and net cash flows: Year Net Income Net Cash Flow 1 $60,000 $110,000 2 50,000 100,000 3 50,000 100,000 4 40,000 90,000 5 40,000 90,000 6 40,000 90,000 7 40,000 90,000 8 40,000 90,000 What is the cash payback period? a. 5 years b. 4 years c. 6 years d. 3 years 17, The expected average rate of return for a proposed investment of $ fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total net income of $240,000 for the 4 years, is 650,000 in a

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