What are the arithmetic and geometric average returns for a stock with annual returns of 26%, 4%, -30%, 43%, and 7%?

A) 10.0%; 7.0%
B) 10.0%; 8.8%
C) 10.0%; 21.8%
D) 12.5%; 7.0%
E) 12.5%; 8.8%

In general,when marginal benefit is greater than marginal cost,the decision maker should do _____ of the activity.

A) less
B) that exact amount
C) more
D) none

In a decision to retain or replace old equipment the salvage value of the old equipment is relevant in incremental analysis.

Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 12,600 kilograms of Jurislon were on hand. The cost of Jurislon is $25 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.The total cost of Jurislon to be purchased in August is:

A) $2,757,500
B) $1,498,750
C) $1,813,750
D) $1,525,000