1. Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales, 7 hours; and Wales 1 hour.

   Which product has the highest contribution margin per machine hour?

2. 	a.	Bales and Tales have the same
   	b.	Bales
   	c.	Wales
   	d.	Tales

2.

1. Below is a table for the present value of $1 at compound interest.

   Year	6%	10%	12%
   1	0.943	0.909	0.893
   2	0.890	0.826	0.797
   3	0.840	0.751	0.712
   4	0.792	0.683	0.636
   5	0.747	0.621	0.567

   Below is a table for the present value of an annuity of $1 at compound interest.

   Year	6%	10%	12%
   1	0.943	0.909	0.893
   2	1.833	1.736	1.690
   3	2.673	2.487	2.402
   4	3.465	3.170	3.037
   5	4.212	3.791	3.605

   Using the tables above, what would be the present value of $25,000 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%?

   	a.	$19,800
   	b.	$79,250
   	c.	$15,525
   	d.	$17,075