Mountainburg industries has developed two new products but has only enough plant capacity to introduce one product during the current year.
the following data will assist management in deciding which product should be selected. mountainburg's fixed overhead includes rent and utilities, equipment depreciation, and supervisory salaries.

selling and administrative expenses are not allocated to individual products. =direct materials -product l=$44, product w=$36.
machining labor ($12/hour -product l=$18, product w=15.
assembly labor ($10/hour) -product l=$30, product w= 10.
variable overhead ($8/hour) -product l=$36, product w=18.
fixed overhead ($4/hour) - product l=$18, product w=9.
total manufacturing cost -product l=$146, product w=$88.
estimated selling price per unit -product l=$170, product w= $100.
actual research and development costs-product l=$240,000, product w=$175,000.
estimated advertising costs - product l=$500,000, product w=$350,000.

the advertising costs for the product selected by mountainburg will be:

a) conversion costs.
b) opportunity costs.
c) prime costs.
d) period costs.

Synovec co. is growing quickly. dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. if the required return is 11 percent, and the company just paid a dividend of $2.05, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Bakery has bought 250 pounds of muffin dough. they want to make waffles or muffins in half-dozen packs out of it. half a dozen of muffins requires 1 lb of dough and a pack of waffles uses 3/4 lb of dough. it take bakers 6 minutes to make a half-dozen of waffles and 3 minutes to make a half-dozen of muffins. their profit will be $1.50 on each pack of waffles and $2.00 on each pack of muffins. how many of each should they make to maximize profit, if they have just 20 hours to do everything?

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51