Quick problems! Will give good rating.

A: Swifty Corporation plans to sell 3000 purple lawn chairs during May, 7700 in June, and 3000 during July. The company keeps 15% of the next months sales as ending inventory. How many units should Swifty produce during June?

8405

8150

Not enough information to determine

6995

b: Bonita has a standard of 2 hours of labor per unit, at $12 per hour. In producing 2600 units, Bonita used 4900 hours of labor at a total cost of $59780. Bonita's total labor variance is

$3660 F.

$2620 U.

$2300 U.

$2620 F.

C: Pina Colada, Inc. is considering purchasing equipment costing $42000 with a 6-year useful life. The equipment will provide annual cost savings of $12000 and will be depreciated straight-line over its useful life with no salvage value. Pina Colada requires a 10% rate of return.

What is the approximate net present value of this investment?

$30000

$10260

$11832

$8771

c: A $105000, 10%, 5-year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period-interest combinations?

5 interest periods, 10% interest

20 interest periods, 10% interest

20 interest periods, 2.50% interest

5 interest periods, 2.50% interest