Your parents have accumulated a $170,000 nest egg. they have been planning to use this money to pay college costs to be incurred by you and your sister, courtney. however, courtney has decided to forgo college and start a nail salon. your parents are giving courtney $20,000 to her get started, and they have decided to take year-end vacations costing $8,000 per year for the next four years. use 8 percent as the appropriate interest rate throughout this problem. use appendix a and appendix d for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. how much money will your parents have at the end of four years to you with graduate school, which you will start then?

1.Product cost= 778100

2.Period cost = 393700

3. Product cost= 828300

4. Period cost= 368300

Explanation:

1. Total manufacturing cost per unit =

Direct material cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit.

                  =  8.90 + 5.90 + 3.40 + 6.90

                 = 25.1 per unit.

Product cost = units produced * cost per unit = 31000 * 25.1 = 778100

2. Period cost= units sold * ( Fixed and variable selling and administrative expense per unit+sales commission per unit)

               = 31000 * ( 5.40+ 4.40 +2.90)

              = 31000 * 12.7

             =   393700.

3. Product cost = units produced * product cost per unit = 33000* 25.1=

828300.

4.Period cost = units sold * ( Fixed & variable selling and administrative cost per unit.

          =   29000 * 12.7

        =   368300