3. A family friend is planning her retirement from work in the U. S. She is 62 years old right now (time 0) and has the choice of taking her Social Security (a public pension program) according to the following schedule (first payment noted in parentheses): I. Early retirement at age 62 (month 0) $1,300 per month for life II. Regular retirement at age 67 (month 60) $1,800 per month for life III. Delayed retirement at age 70 (month 96) $2,300 per month for life If her expected life expectancy is 92 years old (exactly), what are the present values of the choices? (Assume r = 4% (annual))

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.