Bill operates a boat rental business in a competitive industry. he owns 10 boats and pays $1,000 per month on the loan that he took out to buy them. he rents out each boat to his customers for $200 per month. the variable cost for each boat rental is $50. in the off season, bill should:
1. operate his business as long as he rents at least 7 boats per month.2. operate his business as long as he rents at least 1 boat per month.3. operate his business as long as he rents all 10 boats each month.4. raise the price he charges per boat rental.

Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year.if the tax rate is 35 percent, what is the annual ocf for the project?