Fast Foto bought a new highminusspeed photo copier to offer customers the opportunity to make highminusquality copies out of their digital pictures. Its useful life is 7 years. The copier cost $ 7 comma 680 and will generate annual cash inflows of $ 2 comma 130. The residual value of the copier is $ 1 comma 390. The payback period in years is closest to A. 5.53. B. 3.61. C. 2.95. D. 2.61.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.