A product sells for $200 per unit, and its variable costs per unit are $130. Total fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?
A. 5,000.
B. 500.
C. 6,500.
D. 6,000.
E. 5,500.
Answer: C
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McQueen, Inc. grants 200,000 nonqualified stock options to Robert Chalmers, the CEO, on January 1, 2018. The par value of McQueen's common stock is $1. The exercise price on the options is $35 per share, and the options are exercisable in two years.The stock price on January 1, 2018 is $31 per share. This is a fixed option plan. Using the Black-Scholes option pricing model, the value of each option is estimated to be $15.50 at the date of grant. Stock prices are $45, $65, and $50 at December 31, 2018, 2019, and 2020, respectively. Robert exercises his options on April 14, 2021, when the stock price is $57 per share.Required:
Using current GAAP, how much expense will McQueen, Inc. recognize for the year ended December 31, 2019 related to the options?Prepare the journal entries needed on the date of exercise. What will be an ideal response?
An example of an unearned revenue account for prepaid services does not include
a. Unearned Interest Revenue; b. Unearned Maintenance Revenue; c. Unearned Subscription Revenue; d. Unearned Insurance Revenue; e. Unearned Merchandise Inventory
Which of the following is most useful when a firm offers a variety of products that serve the needs of a wide range of customers?
A) the single marketing manager structure B) the independent brand manager structure C) the sales manager structure D) the product category manager structure E) the market manager structure
Professionals such as doctors and lawyers display their degrees and certifications because ____________
a. they want to build personal relationships with their clientele and generate a moment of truth. b. they want customers to "see" their credentials that qualify them to provide the service. c. they want to provide detailed information about their core values. d. they want to provide a visual example of their prowess and enhance experiential attributes. e. These items act as an advertisement that highlights important aspects of their company.