Exercise 15-11 Evaluating a decision to Increase sales volume by lowering sales price LO 15-3, 15-4, 15-5 Baird Educational Services had budgeted its training service charge at $74 per hour. The company planned to provide 37,000 hours of training services during 2019. By lowering the service charge to $54 per hour, the company was able to increase the actual number of hours to 38,900. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (ie, zero variance).) b. Determine the flexible budget variance, and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect i.e., zero variance).) c. Did lowering the price of training services increase revenue? Variance a b Volume variance Flexible budget variance Was the decision profitable? No Exercise 16-7 Using the present value Index LO 16-2 Fanning Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $150,000 and $110,000, respectively. The present value of cash inflows and outflows for the second alternative is $325,000 and $275,000, respectively. Required a. Calculate the net present value of each investment opportunity. (Negative amounts should be indicated by a minus sign.) b. Calculate the present value index for each investment opportunity (Round "PVI" to 2 decimal places.) c. Indicate which investment will produce the higher rate of return. a Alternative 1 (NPV) Alternative 2 (NPV) Alternative 1 (PVI) Alternative 2 (PVI) c. The investment that will produce the higher rate of return is