A solid-waste recycling plant is considering two types of storage bins using an MARR of 10% per year, 1. Use ROR evaluation to determine which should be selected (if trial and error is preferred, use i= 5% and 10%)
2. Confirm the selection with the selection using the regular Aw method at 1-10% per year
3. What can you conclude form these two selection methods?
Storage Bin P Q
First Cost,$ -18,000 -35,000
AOC, $ per year -4,000 -3,600
Salvage value, $ 1000 2,700
Life, years 3 6

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)