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Olinick Corporation is considering a project that would require an investment of $379.000 and would last for 8 years. The incremental annual revenues and expenses

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Olinick Corporation is considering a project that would require an investment of $379.000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.) $240,000 27,000 213,000 Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses Net operating income 45,000 58,000 53,000 156,000 $ 57,000 The scrap value of the project's assets at the end of the project would be $35.000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: (Round your answer to 1 decimal place.) Multiple Choice 3.4 years O 6.6 years O 4.6 years O Kahn Corporation (a multi-product company) produces and sells 8,000 units of Product X each year. Each unit of Product X sells for $10 and has a contribution margin of $6. If Product X is discontinued, $50,000 of the $60,000 in annual fixed costs charged to Product X could be eliminated. The annual financial advantage (disadvantage) for the company of eliminating this product should be: $2.000 ($2,000) S12,000 (S12000) Winder Corporation is a specialty component manufacturer with idle capacity. Management would like to use its extra capacity to generate additional profits. A potential customer has offered to buy 3.000 units of component QEA. Each unit of QEA requires 5 units of material F85 and 5 units of material E71. Data concerning these two materials follow: Units in Material Stock F85 740 E71 13,680 Original Cost Per Unit $ 4.90 $ 5.00 Current Market Disposal Price Per Value Per Unit Unit $ 4.75 $ 4.20 $ 4.70 $ 3.60 Material F85 is in use in many of the company's products and is routinely replenished. Material E71 is no longer used by the company in any of its normal products and existing stocks would not be replenished once they are used up. What would be the relevant cost of the materials, in total, for purposes of determining a minimum acceptable price for the order for product QEA? Multiple Choice O $126,702 0 $141.750 $126,295

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