Megan used to work at the local pizzeria for $15,000 per year but quit in order to start her own deli. to buy the necessary equipment, she withdrew $20,000 from her inheritance, (which paid 8 percent interest). last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. she asked her dad the accountant and her mom the economist to calculate her costs for her.
a. dad says her cost is $9,000 and mom says her cost is $2,400.
b. dad says her cost is $31,000 and mom says her cost is $35,000.
c. dad says her cost is $25,000 and mom says her cost is $16,600.
d. dad says her cost is $31,000 and mom says her cost is $47,600.

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))