Question 16

Mark wants to withdraw $6,500 at the end of three years and $8,000 at the end of five years. He wants to this in such a way that the account balance drops to zero after the last withdrawal. Assuming that the interest rate is 5%, how much money should Mark deposit today to ensure that his needs are met??

Select the correct answer

1.    ?$653.26

2.    ?$6,268.21

3.    ?$5,614.94

4.    ?$11,883.15

Question 17

Raul needs to choose one alternative from the four alternatives given below. Applying the concept of time value of money, which of the following alternatives should he select??

Select the correct answer

1.    Receiving $130 at the end of two years at an interest rate of 8% compounded annually

2.    Receiving $150 at the end of three years at an interest rate of 7% compounded annually

3.    Receiving $90 at the end of one year at an interest rate of 5% compounded annually

4.    Receiving $100 at the end of two years at an interest rate of 9% compounded annually

Question 18

Calculate the total equivalent units for materials from the information given below.

?

? Percentage complete

? Units Materials Conversion

Work in process, June 1 1,100 60% 35%

Units started into production during June 22,500 ? ?

Units completed and transferred to the next department 21,800 100% 100%

Work in process, June 30 1,800 50% 15%

?

Select the correct answer

1.    21,260

2.    23,400

3.    22,700

4.    22,070

Question 19

Intanke Inc. manufactures vacuum cleaners. The following information is available for the company.

? Per unit cost

Sales $550

Variable expenses 370

?

The fixed expenses are $95,000. Calculate the net operating income for 750 vacuum cleaners.

Select the correct answer

1.    ?$35,000

2.    ?$40,000

3.    ?$595,000

4.    ?$135,000

Question 20

Calculate depreciation from the following information.

?

Accounting profit break-even point 2,871 units

Fixed costs $4,083,200

Sales price $42 per unit

Total variable costs $2,600

Number of units 100

Select the correct answer

1.    ?$812,000

2.    ?$706,200

3.    ?$510,400

4.    ?$1,483,200