Two grams of musk oil are required for each bottle of mink caress, a very popular perfume made by a small company in western siberia. the cost of the musk oil is $2.20 per gram. budgeted production of mink caress is given below by quarters for year 2 and for the first quarter of year 3: year 2 year 3 first second third fourth first budgeted production, in bottles 86,000 116,000 176,000 126,000 96,000 musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. for this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. some 34,400 grams of musk oil will be on hand to start the first quarter of year 2. required: prepare a direct materials budget for musk oil, by quarter and in total, for year 2. (round "unit cost of raw materials" answers to 2 decimal places.)

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.