Reference no: EM132911429

Problem 1: The Environmental Filter Company is planning to sell air filter systems for $3,000 per unit. Variable costs are $1,200 per unit and total fixed costs are $1,200,000. What is the dollar value of sales necessary to break even?

Select one:

a. $1,000,000

b. $2,000,000

c. $2,500,000

d. $5,000,000

Problem 2: The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, and for five periods is 0.68058. The future value factors for the same rate and periods are: one period: 1.08, two periods: 1.1664, three periods: 1.944, four periods: 2.099, and five periods: 2.267. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now?

Select one:

a. $125.97

b. $92.60

c. $85.73

d. $79.38