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Krazy Kayaks sells its entry-level kayaks for $650.00 each. Its variable cost is $250.00 per kayak. Fixed costs are $23,000 per month for volumes up
Krazy Kayaks sells its entry-level kayaks for $650.00 each. Its variable cost is $250.00 per kayak. Fixed costs are $23,000 per month for volumes up to 1,200 kayaks. Above 1,200 kayaks, monthly fixed costs are $58,000. What is the budgeted operating income at a level of 700 kayaks per month? O A. $257,000 OB. $280,000 OC. $432,000 OD. $222.000 Assume All About Shoes Corporation has a division manager that is considering investing in the Hiking Shoes Project which had the following results last year (in thousands). Management's target rate of return is 20%. The division manager's current ROI before the investment is 30%. Sales $5,000,000 Operating income 250,000 Total assets 1,000,000 Current liabilities 750,000 What is the the project's Residual Income (RI) and would the corporation's division manager accept or reject the project if the manager was evaluated using RI ? O A. $50,000 and accept O B. $50,000 and reject O C. $250,000 and reject O D. $250,000 and accept
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