Question: 1. Scandia Knitting Co. makes sweaters. In any one month, they can produce 25,000 sweaters which they have no problem selling. Their total variable costs per sweater are $36, total fixed costs of $100,000 and a markup percentage of 30%. Using the cost-plus approach, at what amount would Scandia be selling its sweaters?
a. $40.00
b. $46.80
c. $52.00
d. $56.00
e. $96.00
f. $52.00
2. Which of the following can be used to compare capital investment proposals of different size investments when doing a net present value analysis?
a. Profitability Index
b. Present Value Annuity Factor
c. Payback Period
d. Price-level Index