Megan used to work at the local pizzeria for $15,000 per year but quit in order to start her own deli. to buy the necessary equipment, she withdrew $20,000 from her inheritance, (which paid 8 percent interest). last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. she asked her dad the accountant and her mom the economist to calculate her costs for her.
a. dad says her cost is $9,000 and mom says her cost is $2,400.
b. dad says her cost is $31,000 and mom says her cost is $35,000.
c. dad says her cost is $25,000 and mom says her cost is $16,600.
d. dad says her cost is $31,000 and mom says her cost is $47,600.

mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.