Kogler corporation's relevant range of activity is 7,000 units to 11,000 units. when it produces and sells 9,000 units, its average costs per unit are as follows:

average cost per unit

direct materials $4.60
direct labor $4.20
variable manufacturing overhead $1.40
fixed manufacturing overhead $8.00
fixed selling expense $3.20
fixed administrative expense $1.70
sales commissions $0.70
variable administrative expense $0.65
if the selling price is $23.00 per unit, the contribution margin per unit sold is closest to:

a: $17.45
b: $0.30
c: $14.65
d: $5.80

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Financial information that is capable of making a difference in a decision is

Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?