Handley manufacturing company has prepared the following flexible budget for august and is in the process of interpreting the variances. f denotes a favorable variance and u denotes an unfavorable variance. flexible variances budget price efficiency material a $ 50 comma 000 $ 1 comma 100f $ 3 comma 600u material b 69 comma 000 400u 1 comma 100f direct manufacturing labor 87 comma 000 500u 2 comma 900f the most likely explanation of the above variances for material a is that

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.