Fielder Productions reports the following information:
Required:
(a) Calculate Fielder's degree of operating leverage (DOL).
(b) Fielder Productions forecasts a 6% increase in sales. What is the expected effect in percent on pretax income?
(b) A 6% increase in sales will result in a 48% (6% * 8) increase in income before taxes.
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When a client has significant and nonrecurring charges to nonoperating expenses, which of the following would be the most appropriate materiality benchmark?
a. Net profit. b. Income from continuing operations. c. Cash inflows. d. Cash outflows.
A ______ contract is desired when the purchases are expensive and the cost of material/labor to produce the products is uncertain.
A. buyback B. fixed-price C. quantity-flexibility D. cost-plus
Toyota uses a strategic network of vertical relationships. Toyota enables engineers in supplier firms to communicate easily with companies with which Toyota has contracts for services. This results in the suppliers and Toyota (the strategic center firm) being more:
A. interdependent. B. competitive with one another. C. creative. D. complementary.
A ________ is a document that is issued by a bank on behalf of a buyer who purchases goods on credit from a seller that guarantees that if the buyer does not pay for the goods, then the bank will pay the seller
A) remittance advice B) certified check C) cashier's check D) letter of credit