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Arche produces a product with the following per unit costs.
Last year,Arche produced and sold 3,000 units at a sales price of $80 each.Total selling and administrative expenses were $25,000.
Required: Solve for the following:
A. total cost of goods sold for last year
B. operating income for last year
C. total gross margin for last year
D. prime cost per unit
Leasing Alternatives
Options available to businesses or individuals for obtaining the use of equipment or property through leasing agreements rather than purchase.
Net Present Value
A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Present Value
The contemporary valuation of foreseeable future earnings or sequences of cash payments, taking into account a specified interest rate.
Net Present Value Method
A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
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