Vanderhyde Kennel uses tenant-days as its measure of activity, an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,400 tenant- days, but its actual level of activity was 3,442 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May Data used in budgeting: Fixed element per month Variable element per Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses 3,650 $ 2,280 9,750 8,400 20.00 7.30 13.40 4.80 0.50 26.00 24,080 Actual results for May: Wages and salaries Foods and supplies Facility expenses Administratlve expenses $ 73,000 $30,062 47,118 25,282 $ 9,866 The wages and salaries in the planning budget for May would be closest to: O $30,062 $29,683 O $28.470 $28,758 (gnore income taxes in this problem.) Mercer Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $310,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $52,000 per year to operate and maintain, but would save $93,000 per year in labor and other costs. The old machine can be sold now for scrap for $31,000. The simple rate of return on the new machine is closest to: (Assume the company uses straight-line depreciation.) 0 3.58% 30.00% 717% 3.23%