The Truck Toys Company manufactures traditional wooden toy trucks. It has determined its variable cost/unit to be $1.50/truck
Fixed costs, however, are quite high because old equipment is used in the manufacturing process and costly packaging is needed to market the toy trucks. The fixed costs are estimated at $11,000/month. The company sells their toy trucks at a price of $7.75/each. How many toy trucks must be sold annually to break even?
A) 1,760 toy trucks
B) 5500 toy trucks
C) 20,000 toy trucks
D) 1,879 toy trucks
E) None of the above
E
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In a(n) ________, there is a two-way exchange of information between purchasing organizations
A) data warehouse system B) intelligent agent approach C) channel partner model D) data broker system E) market basket analysis
Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2018. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Flynn in stock issuance costs.The book values for both Flynn and Macek as of January 1, 2018 follow. The fair value of each of Flynn and Macek accounts is also included. In addition, Macek holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands. Flynn, Inc Macek
Company Book Value Fair ValueCash$900 $80 $80 Receivables 480 180 160 Inventory 660 260 300 Land 300 120 130 Buildings (net) 1,200 220 280 Equipment 360 100 75 Accounts payable 480 60 60 Long-term liabilities 1,140 340 300 Common stock 1,000 80 Additional paid-in capital 200 0 Retained earnings 1,080 480 ?What amount will be reported for consolidated cash after the acquisition is completed? A. $580,000. B. $500,000. C. $555,000. D. $875,000. E. $475,000.
?Ace Inc. is evaluating two mutually exclusive projects-Project A and Project B. The initial cash outflow is $50,000 for each project. Project A results in cash inflows of $15,625 at the end of each of the next five years. Project B results in one cash inflow of $99,500 at the end of the fifth year. The required rate of return of Ace Inc. is 10 percent. Ace Inc. should invest in:
A. ?Project B because it has no cash inflows in the first four years of its life. B. ?Project B because it has a higher net present value (NPV). C. ?Project A because it will yield cash every year for five years. D. ?Project A because it has a positive net present value (NPV). E. ?Project A because it will generate cash in the initial years of its life.
Smartphones are an example of technological convergence.
Answer the following statement true (T) or false (F)