Web Exam 3 edited

Web Exam 3 edited - Exam#3 For time value of money...

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Exam #3 For time value of money questions use the related tables located in Appendix B of the textbook; otherwise, you should round your factor to the nearest 4 decimals places. Your final answer should be rounded to the nearest whole number. 01. A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $ 10,000. The operating income expected if the company produces and sells 16,000 units is: A. $2,667 B. $14,000 C. $18,667 D. $30,000 …. Lina …..….Alex-Steve Hong……Don…. E. $35,000 02. An opportunity cost: A. Is an unavoidable cost. B. Requires a current outlay of cash. C. Is the lost benefit of choosing an alternative course of action. …. Lina…. . Alex … ……Don… D. Is irrelevant in decision making. E. None of the above 03. You decided that its time to start preparing for retirement so you opened an investment account and made an initial deposit of $10,000. You are going to retire in 40 years and vow to make a deposit in your retirement account of $3,600 per year. If your account earns 8% interest, how much will be in your account when you retire? Answer .Lina, Alex, Don- 1149848 ……… 04. Carla’s Coffee sells a variety of coffees and pastries. In a recent budget performance report, there was a quantity variance related to milk. All of the following may help explain that variance except: A. Several gallons of milk were accidentally allowed to spoil. B. Milk was purchased from a different supplier than the one normally used. …. Lina ….. Alex… ……Don…. C. A case of milk was stolen from the refrigerator. D. Employees did not use the measuring equipment properly. E. All of the above……. .random girl…. . 05. The Olinda Corporation offers its two hundred employees a free membership at Lean & Mean, a local area fitness center. The following total costs are related to that contract (a) initial membership fee $500 (b) monthly service charge $9,100 and (c) contract cancellation fee $2,500. The company is considering switching to another fitness center, Ripped Up, which would simply charge $45 per employee per month with no contract. The company intends to offer its employees a fitness center membership for the next two years. Answer
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This note was uploaded on 08/31/2009 for the course ACC 310F taught by Professor Verduzco during the Fall '07 term at University of Texas.

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Web Exam 3 edited - Exam#3 For time value of money...

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