The easiest way companies can find appropriate media connectors is to ask their customers about their media consumption

Indicate whether the statement is true or false


TRUE

Business

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A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total controllable cost variance is:

A. $13,200 unfavorable. B. $1,200 unfavorable. C. $1,200 favorable. D. $15,200 favorable. E. $13,200 favorable.

Business

There is a 60% chance that a customer without a smart phone will buy one this year. There is a 95% chance that a customer with a smart phone will continue with a smart phone going into the next year

If 30% of target market currently own smart phones, what proportion of the target market is expected to own a smart phone next year?

Business

Optimal capital structure is the capital structure at which the weighted average cost of capital is minimized, thereby maximizing a firm's value

Indicate whether the statement is true or false

Business

Waltermire Corporation has provided the following information concerning a capital budgeting project:    After-tax discount rate 12%Tax rate 30%Expected life of the project 4 Investment required in equipment$160,000 Salvage value of equipment$0 Working capital requirement$30,000 Annual sales$460,000 Annual cash operating expenses$340,000 The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The income tax expense in year 2 is:

A. $12,000 B. $24,000 C. $102,000 D. $138,000

Business