Focus on the difference between feasible alternatives ​(Principle 2LOADING...​)! Insulated concrete forms​ (ICF) can be used as a substitute for conventional wood framing in building construction. Heating and cooling bills will be about ​% less than in a similar​ wood-framed building in upstate New York. An ICF home will be approximately ​% more expensive to construct than a​ wood-framed home. For a typical ft home costing ​$ ft to construct in upstate New York and costing ​$ per month to heat and​ cool, how many months does it take for a ft ICF home to pay back its extra construction​ cost?

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?