Various financial data for SunPath Manufacturing for 2011 & 2012 follow.

What is the percentage change in the labor partial productivity measure for SunPath between 2011 & 2012?
A. – 9.22
B. 2.33
C. – 0.53
D. 2.88
E. 10.39
2- ATT is currently developing a new cell phone model that will be released onto the market upon completion of development. The cost estimates and forecast are given below:

Development Cost $2,000,000
Ramp up costs $750,000
Marketing and support cost $500,000. per year
Sales and production volume year 1 40,000
Sales and production volume year 2 50000
Sales and production volume year 3 40000
Unit production Cost $75
Unit production price $135
Interest rate 12%

Year 1 Year 2 Year 3 Year 4 Year 5
Development
Ramp Up
Marketing & Support
Production & Sales

a) What is the net present value (NPV) of the project?
b) What is the impact on NPV if sales is reduced by 10%?
c) ATT thinks it can cut the development time in half if by spending an extra $1,500,000 on the development of this project. If the product is launched a year early, then the product still has a three year life but sales volume staring in year 2 and ending in year 4 will be 45,000, 60,000 and 55,000. Is it worth it to ATT to spend extra money on development?

3- Assume a fixed cost for a process of $120,000. The variable cost to produce each unit of product is $35, and the selling price for the finished product is $50. Which of the following is the number of units that has to be produced and sold to break-even?
A. 5,000 units
B. 6,000 units
C. 8,000 units
D. 11,000 units
E. 12,000 units
4-Assume that you are offered a new piece of equipment for $10,000. The equipment will produce 10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been 2,000 units per year. Your current equipment is fully depreciated and can produce the 2,000 units per year at but at a margin of only $4.00 per unit. Should you purchase the new equipment? Under what conditions?