Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results
AB CD AB CD
Price per bushel $ 80 $ 25 $ 85 $ 17
Variable cost per bushel $ 75 $ 20 $ 75 $ 13
Sales (in bushels) 2,700 3,700 2,400 4,800

The total market was estimated to 64,000 bushels at the time of budget. The actual total market for the year is 36,000 bushels.

What is the firm's market size variance?

Multiple Choice
$0.
$14,000 unfavorable.
$10,750 unfavorable.
$16,000 unfavorable.
$27,500 unfavorable.

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.