Reference no: EM132599187

Question 1: The Chester company will increase its automation for the Cute product by 2.0. Assuming no further change in capacity, how much will this investment in automation cost?
Select: 1

Option 1: $7,700,000

Option 2: $17,600,000

Option 3: $8,800,000

Option 4: $15,400,000

Question 2: Chester has negotiated a new labor contract for the next round that will affect the cost for their product City. Labor costs will go from $7.91 to $8.41 per unit. Assume all period and other variable costs as reported on Chester Income Statement remain the same If Chester were to pass on half the new labor costs to their customers, how many units of product City would need to be sold next round to break even on the product?

Option 1: 528

Option 2: 1800

Option 3: 518

Option 4: 540

Question 3: Of Chester Corporation's products, which earned the lowest Net Margin as a percentage of its sales?
Select: 1

Option 1: Cozy

Option 2: Cute

Option 3: Crimp

Option 4: City

Question 4: Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 12.4S2021 bond early.
Select: 1

Option 1: $5,756,951

Option 2: $5,517,462

Option 3: $6,231,321