Question 2 Option 1 Option 3 Option 2 __________________________________________________________________ Annual fixed cost $2,500 $4,500 $27,000 Variable cost per thousand pounds 100 80 20 1. Based on annual cost, Determine the annual volume (in thousands of pounds) at which the company would be indifferent between Option 1 and Option 2; between Option 2 and option 3; and between Option 1 and option 3. 2. Create a table showing the total annual cost of each option if annual volume (in thousands of pounds) is 50, 200, 350, and 500. Circle the lowest cost at each annual volume. 3. Based only on annual cost, for what range of annual volumes would each option be preferred?

Question 2 Option 1 Option 3 Option 2 __________________________________________________________________ Annual fixed cost $2,500 $4,500 $27,000 Variable cost per thousand pounds 100 80 20 1. Based on annual cost, Determine the annual volume (in thousands of pounds) at which the company would be indifferent between Option 1 and Option 2; between Option 2 and option 3; and between Option 1 and option 3. 2. Create a table showing the total annual cost of each option if annual volume (in thousands of pounds) is 50, 200, 350, and 500. Circle the lowest cost at each annual volume. 3. Based only on annual cost, for what range of annual volumes would each option be preferred?

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 14.6CP

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A= P(1 + rt) A= $2,030; P = $1,750; t= 4 years Find R?
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