An actuary has determined that a company needs to have a $90,000,000 balance in its pension fund 20 years from now. An interest rate of 8% is considered appropriate for all pension fund calculations. You are given the following two interest factors: (i) Present value of an ordinary annuity factor at 8% equals 9.8181; and (ii) Future value of an ordinary annuity factor at 8% equals 45.762. How much must the company contribute to the fund each year? (a) $9.1667 million (b) $883.629 million (c) $1.967 million (d) $9.8181 million

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?