Suppose you are trying to save $20,000 to buy a used boat and you are going to deposit $5,000 today in savings account. The higher the interest rate .

The higher the interest rate, the lower the time required.

Explanation:

Giving the following information:

Suppose you are trying to save $20,000 to buy a used boat and you are going to deposit $5,000 today in a savings account.

The higher the interest rate, the lower the time required.

As the money invested and the future value required are fixed, the only variables are the interest rate and the time between deposit and objective.

a. $134,546

Explanation:

proceeds from long coat

$719 x 820 = 589,580

variable cost

$435 x 820 = (356,700)

fixed cost        (23,100)

Operating Income before Amortization and taxes

209780

- 10,400 depreciation

199380

67,789.2 income tax expense (tax rate 34% x 199380.2)

Net Operating Income 131,590.8

+ 10,400 Non monetary expense (depreciation)

-7444.8 Opportunity Cost

134,546

opportunity cost:

(1,040 - 1,120)

↓80 units of leather jackets

(369-228)x80   =  (11,280) (1-tax) =(7444.8)