The gross profit rate is 40% and the inventory at the end of December was exist19,000. Desired inventory level are 30% of next month's sales at cost___is the expected total purchases budgeted for February a. exist106, 120 b. exist79, 200 c. exist81, 360 d. None of these answers is correct As sales volume decreases in the relevant range, fixed costs per unit____, but total fixed costs____. a. increase, do not change b. decrease: do not change c. do not change: increase d. do not change, decrease: The payback method of capital budgeting approach to the investment decision highlights a. cash flow over the life of the investment. b. the liquidity of the investment. c. the tax savings of the depreciation amounts. d. having as lengthy payback time as possible. Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of exist1.2 million for its room hotel, average daily room rents of exist50, and average variable costs of exist10 for generated. It operates 365 days per year. The amount of net income on rooms that will generated if the hotel is completely full throughout the entire year is____. a. exist(1, 188,000) b. exist4, 275,000 c. exist3, 180,000 d. exist5, 475,000