The following information pertains to Fun in the Sun, Inc., a beach ball manufacturer: Budgeted production costs for the coming year:
Direct materials per ball
Direct labor
ball
Variable overhead per ball
Total fixed overhead
per
$ 5
3
7
47,140
MN
Budgeted selling and administrative costs for the coming year:
Fixed selling & admin expense
$ 23,350
Shipping cost per ball
2
In the coming year, Fun in the Sun plans to produce and
sell 7,100 beach balls at a price of $31 each.
Instructions for Project 3:
1. Prepare a CVP income statement.
2. Calculate the breakeven point in units and sales dollars.
3. Calculate the margin of safety.
4. Calculate the margin of safety ratio.
5. If Fun in the Sun wants to earn net income of $50,000, how many units must
it sell?

answer; organization;

answermarginal cost;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.