Present Value of $1.00 Present Value of an Annuity of $1.00 Period 1 2 0 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 .943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 Period 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 2 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 3 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 4 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 5 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 6 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 7 6 .230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 8 Questions 4 and 5 refer to the following problem: At the end of the year, a company offered to buy 4,850 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 60,600 units of the product that X Company has already made and sold to its regular customers: Sales Cost of goods sold Gross margin Selling and administrative costs Profit $1,151,400 455,712 $695,688 160,590 $535,098 For the year, fixed cost of goods sold were $112,716, and fixed selling and administrative costs were $90,900. The special order product has some unique features that will require additional material costs of $0.83 per unit and the rental of special equipment for $4,500. 4. Profit on the special order would be D: $11,796 E: $15,689 OF: $20,866 A: $5,014 Submit Answer B: $6,669C: $8,869 Tries 0/99 5. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.14. The effect of reducing the selling price will be to decrease firm profits by C: $3,606 D: $4,796 E: $6,379 F: $8,484 A: $2,039 Submit Answer B: $2,711 Tries 0/99