Use the Information Below to Answer the Following Question(s)

question 135

Multiple Choice

Use the information below to answer the following question(s) .The following data are available for a heating, ventilating, and air conditioning (HVAC) vent manufacturer started as a new company four years ago when the construction cost index was 120:
* = "of long-term assets at historical cost"
-What is the net book value (NBV ) of the long-term assets at current cost at the end of year 4?

• A)$640,000
• B)$426,667
• C)$720,000
• D)$810,000
• E)$540,000

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, providing a measure of the ability of a company to cover its fixed costs and contribute to profit.

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Washburn Guitars

A well-known American manufacturer and importer of guitars, mandolins, and other string instruments with a history dating back to the 19th century.

Batch-custom Instruments

Tools or devices that are customized in small series to meet specific requirements of a customer or market niche.