Assume (1) total sales are $300,000, (2) the direct labor cost of $40,000 is 25% of total conversion costs and 40% of total prime costs, (3) the total selling and administrative expense is $62,000. (4) the only variable selling and administrative expense is sales commissions of 4% of sales, (5) all manufacturing overhead costs are fixed costs, and (6) there are no beginning or ending inventories. What is the total variable selling and administrative cost

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.