A company has total fixed costs of $120,000. Its variable cost per unit is $2.00 and its price per unit is $3.50. The break-even point in units is
A. 34,286.
B. 21,818.
C. 80,000.
D. 60,000.
E. This cannot be determined with the information provided.
Answer: C
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Which of the following refers to the process of deciding which customers will get scarce products during product shortages?
A) delegating B) prospecting C) allocating D) dispersing E) targetting
When companies reposition their products and themselves as "green," they are trying to indicate that:
A) they are socially and environmentally conscious. B) their products are of best quality. C) they provide the best "value" for money. D) their products are for upper class customers.
Answer the following statements true (T) or false (F)
1. Sun owns a chain of car washes and is thinking of also opening some restaurants. If she does, this would be an example of unrelated diversification. 2. A company in a single line of business cannot conduct a business portfolio analysis. 3. Functional departments of a company must develop internal strategies for achieving the mission and objectives. 4. One of the main functions for the finance strategy is keeping records of transactions, developing budgets, and reporting financial results.
All of the following can result in a temporary difference between pretax financial income and taxable income except
a. payment of premiums for life insurance. b. depreciation expense. c. contingent liabilities. d. product warranty costs.