Discovery Company sell backyard swing sets. Discovery’s budg…
Discovery Company sell backyard swing sets. Discovery’s budgeted sales for the current year were 3,600 units at a selling price of $225 per unit. Actual sales for the current year were 3,300 units at a selling price of $215 per unit. Budgeted variable costs were $166 per unit, and budgeted total fixed costs were $122,000. Actual total variable costs were $518,100 and actual total fixed costs were $126,000. What is Discovery’s flexible budget spending variance for total costs?
Read DetailsBeluga Corporation is considering a capital investment with…
Beluga Corporation is considering a capital investment with a 3-year time horizon. In addition to the upfront cost and salvage value of the new equipment, the project has additional working capital needs. Beluga uses a hurdle rate of 20% to make capital budgeting decisions and performed the following net present value analysis of the project: What is the profitability index of this project? (Round to two decimal points.)
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