A merger agreement is an agreement between two companies to combine into a single entity
a. True
b. False
Indicate whether the statement is true or false
True
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A capital lease is a lease of property, plant, or equipment that is in effect an installment purchase
Indicate whether the statement is true or false
Describe how team conflict affects team performance.
What will be an ideal response?
The computation of the pension liability for a defined benefit plan uses actuarial estimates or actuarial assumptions of
a. estimated interest rates. b. estimated employee mortality, only. c. estimated employee turnover, only. d. estimated employee turnover, mortality, and interest rates. e. actual employee turnover, mortality, and interest rates.
Generalware, Inc. sells a single product and reports the following results from sales of 100,000 units: Sales ($45 unit) …………..…………….…$4,500,000Less costs and expenses:Direct materials ($16/unit)………….…$1,600,000Direct labor ($9/unit)…………….….… 900,000Variable overhead ($3/unit)…….…….. 300,000Fixed overhead ($8.10/unit)…….......... 810,000Variable administrative ($4.50/unit)…. 450,000Fixed administrative ($4/unit)………... 400,000Total costs and expenses……………... $(4,460,000)Operating income…………………………$ 40,000A foreign buyer wants to purchase 15,000 units. However, they are willing to pay only $36 per unit for this one-time order. They also
agree to pay all freight costs. To fill the order, Generalware will incur normal production costs. Total fixed overhead will have to be increased by $60,000 to pay for equipment rentals and insurance. No additional administrative costs (variable or fixed) will be incurred in association with this special order.Required:(1) Should Generalware accept the order if it does not affect regular sales? Explain.(2) Assume that Generalware can accept the special order only by giving up 5,000 units of its normal sales. Should the company accept the special order under these circumstances? What will be an ideal response?