Answer:

The variable cost per unit is $15.6

Explanation:

In this question, we are asked to calculate the variable cost per unit assumed in the Parents for better schools analysis

Mathematically, the Breakeven point can be calculated through the following formula:

Breakeven point = Fixed Cost/( Selling price per unit - Variable cost per unit)

From the question, we can identify the following;

The selling price per unit is $20

The Breakeven point = 800 books

Fixed cost = Amount invested = $3,600

Substituting these in the above written formula;

800 = 3,600/(20 - VC)

0.2222 = 1/(20-VC)

0.222(20-VC) = 1

4.44 - 0.22VC = 1

3.44 = 0.22VC

VC = 3.44/0.22 = 15.64

This is $15.6 to the nearest cent dollar per unit

**Answer:**

0.1093 or 10.93%

**Explanation:**

The number of days before the company runs out of stock after placing an order (X) is:

Assuming a normal distribution with:

Mean (μ) = 6

Standard deviation (σ)=1.10

The z-score for X=7.353 is:

According to the z-score table, a score of 1.23 falls in the 0.8907-th percentile. Therefore, the probability of the delivery takes longer than 7.353 days is:

**Answer:**

b. $3,350,000

**Explanation:**

<em>Long-Term Liabilities:</em>

Bonds Payable $3,000,000

Notes Payable $165,000

Mortgage Payable $185,000

**Total Long Term Liabilities $3,350,000**

**Answer:**

A

D

**Explanation:**

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

Because the IRR of both projects are positive, both projects are acceptable.

If the manager can only choose one project, she should choose the one with the higher IRR because it would be more profitable.