Perkins Corporation is considering several investment proposals, as shown below: Investment Proposal A B D Investment required $123,750 $165,000 $ 99,000 $132,000 Present value of future net cash flows $176,000 $247,500 $138,600 $158,400 If the project profitability index is used, the ranking of the projects from most to least profitable would be: The SP Corporation makes 43,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 10.20 $ 9.20 $ 3.80 $ 4.75 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $26.05. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: . . Sales are budgeted at $296,000 for November, $316,000 for December, and $230,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,700. Monthly depreciation is $24,000. Ignore taxes. Balance Sheet October 31 Assets $ Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 28,000 80,000 165,760 1,010,000 1,283,760 $ $ Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 242,000 746,000 295,760 1,283,760 $ The cost of December merchandise purchases would be