Oriole furniture company started construction of a combination office and warehouse building for its own use at an estimated cost of $9,500,000 on january 1, 2020. oriole expected to complete the building by december 31, 2020. oriole has the following debt obligations outstanding during the construction period. construction loan-12% interest, payable semiannually, issued december 31, 2019 $3,800,000 short-term loan-10% interest, payable monthly, and principal payable at maturity on may 30, 2021 2,660,000 long-term loan-11% interest, payable on january 1 of each year. principal payable on january 1, 2024 1,900,000 assume that oriole completed the office and warehouse building on december 31, 2020, as planned at a total cost of $9,880,000, and the weighted-average amount of accumulated expenditures was $6,840,000. compute the avoidable interest on this project. (u

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?