14. Given the data for two alternatives, choose the better alternative using the B/C ratio analysis. MARR = 8% Alternative Y $140,000 60,000 120,000 25,000 10 First cost Operating costs/year Benefits /year Dis-benefits/year Life in years $100,000 50,000 100,000 30,000 5

= $ A project has the following estimated data: price 104.00 per unit; variable costs = $60.50 per unit; fixed costs investment = $39,600.00; life = 6 years. What is the $37,500.00; required return = 8%; initial degree of operating leverage at the financial break - even level of output? a) 4.38 b) 7.38 c) 6.38 d) 3.38 e ) 5.38

H1.

B. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?