Contribution margin plus variable cost per unit equals total sales revenue.
Answer the following statement true (T) or false (F)
False
Contribution margin plus total variable costs (not variable cost per unit) equals total sales revenue.
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VRIO is a framework for analyzing a resource or capability to determine its competitive strategic potential by answering four questions. VRIO stands for
A. visibility, relativity, illumination, and obscurity. B. vendors, relationships, introductions, and operations. C. volatility, risk, instability, and obstacles. D. value, rarity, imitability, and organization. E. viability, respect, impact, and outreach.
In business documents, a general rule for readability is that paragraphs normally should be
a. 6 lines or less in length. b. 7 to 12 lines in length. c. no longer than 20 lines. d. any desired length, as the number of lines is not important.
Which of the following statements is true concerning the notice that should be given to third
parties upon the dissolution of a partnership? A) All third parties need receive only constructive notice. B) Third parties who have dealt with the partnership must receive constructive notice. C) Third parties who have not dealt with the partnership, but who know of its existence, must receive constructive notice. D) All third parties must receive actual notice.
The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years, and produces after-tax cash flows equal to $44,503 per year. If the firm's required rate of return is 14 percent and its tax rate is 40 percent, what is the project's internal rate of return (IRR)?
A. 8% B. 14% C. 18% D. 5% E. 20%