A company's most profitable products are often those which:

Select one:

A.

Have the lowest contribution margin ratios and the highest sales volumes.

B.

Have the highest contribution margin ratios and the highest sales volumes.

C.

Have the lowest contribution margin ratios and the lowest sales volumes.

D.

Have the highest contribution margin ratios and the lowest sales volumes.

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Jericho Corporation is considering the purchase of new equipment costing initially $96,000. The equipment has an estimated life of 6 years with no salvage value. Straight-line depreciation is to be used. Net annual after tax cash flow is estimated to be $31,200 for 6 years. The payback period is:

Select one:

A.

5.0799 years.

B.

1.2300 years.

C.

6.0000 years.

D.

3.0769 years.