A firm with a gross margin as a percent of sales of 20 and a sales-to-stock ratio of 5 has a GMROI of _____
a. 20
b. 75
c. 100
d. 400
c
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In a job-shop process, processing requirements are different for each product because they ______.
A. contribute to economies of scale in production B. produce unique products in low volumes C. contribute to economies of scope in production D. facilitate continuous production
The role of a salesperson should move from supporting to selling
Indicate whether the statement is true or false
The highest level of risk in new-product development occurs when products prove to be dangerous and defective or when products fail to generate ________.
Fill in the blank(s) with the appropriate word(s).
The management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system for this product for last year appear below:Sales$150,000Variable expenses$ 72,000Fixed manufacturing expenses$ 50,000Fixed selling and administrative expenses$ 33,000In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued.What would be the financial advantage (disadvantage) from dropping product V86O?
A. $35,000 B. $5,000 C. ($35,000) D. ($5,000)