Swifton corporation produces a single product. last year, the company had net operating income of $40,000 using variable costing. beginning and ending inventories were 22,000 and 27,000 units, respectively. if the fixed manufacturing overhead cost was $3 per unit both last year and this year, what was the income using absorption costing? $15,000 $25,000 $40,000 $55,000

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?