Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a new
range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers is estimated at $400,000.
The costs producing a single unit is $200.
The company prices these speakers at $400. The sales forecast projects that 1,800 units will be
sold by the end of the first year, 4,200 more in the second year, and 2,500 during the third year
after launch. At what point of time is the company most likely to break even?
A) twelve months B) eighteen months
C) fifteen months D) six months
A
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A. Golden Rule B. code of ethics C. stakeholders’ approach D. discernment and advice
A necessary element of internal control is:
A) database. B) systems design. C) systems analysis. D) information and communication.
Peter was just hired as an accounting assistant and wants to make a good impression in his new position. What should he do when listening to his supervisor?
A) Don't ask questions because doing so may make him look ignorant. B) Show his interest by leaning forward and striving for good eye contact. C) Feel free to answer the phone if he receives a call to show how busy he is. D) Rely on his memory for the details rather than take notes to show how sharp he is.
Bonds with a maturity that is longer than the holding period have no interest-rate risk
Indicate whether the statement is true or false