Question

#34

Matthew Corporation is adding a new product line that will require an investment of

$ $135,000.

The product line is estimated to generate cash inflows of

$ $25,000

the first​ year,

$ $20,000

the second​ year, and

$ $15,000

each year thereafter for ten more years. What is the payback​ period?

#40

Johnson Trucking Company wants to determine a fuel surcharge to add to its​ customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the​ truck's operating costs so it has a better idea of how distance affects these costs. Johnson Trucking Company has the following data available.

Month	Miles driven	Total operating costs
January	​16,200	​$22,650
February	​17,000	​$23,250
March	20,000	$ $26,000
April	​16,500	​$22,875
May	​17,400	​$23,550
June	16,000	$ $21,000

Using the

high−low

​method, the monthly operating costs if Johnson Trucking Company drives

24,000

miles in a month will be​ (Round any intermediary calculations to the nearest​ cent.)

Answer 1