QUESTION2 Numerical Questions [10] 2.1 Below is a performance report that compares budgeted and actual profit in the shoe department of Clara Boutique for the month of June: Actual Budget $680,000 Difference ($8,000) $672,000 Sales Less: Cost of merchandise Salaries of sales staff Controllable profit 330,000 120,000 $230,000 325,000 123,000 $224,000 5,000 (3,000) ($6,000) Evaluate the department in terms of its increases or decreases in sales and expenses. Do you believe it would be useful to investigate either or both increases in expenses? Explainand SHOW how application of these concepts helps to make marketing more effective. (2.5) 2.2 Winston Company has collected the following sales data for recent months:(2.5) Month Units Sold Total Cost June 20,500 $20,960 July 22,300 21,428 August 18,750 20,505 September 21,200 21,395 a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. What is the estimated cost for a month in which 21,600 units sold? b. 2.3A project will require an initial investment of $620,000 and will return $165,000 of operating cash flows each year for five years. The required rate of return is 9%. How much is the project's net present value? Based on this analysis, should the company proceed with the project?(2.5) 5.4 A project will require an initial investment of $580,000 and is expected to generate the following cash flows: (2.5) Year 1 $ 60,000 Year 2 250,000 Year 3 250,000 Year 4 200,000 Year 5 100,000 a. b. What is the project's payback period? If the required rate of return is 20% and taxes are ignored, what is the project's net present value