Avocado has received a special order for 2,000 units of its product at a special price. The product normally sells for $400 and has the following manufacturing costs: Per unitDirect materials $120Direct labor 80Variable manufacturing overhead 60Fixed manufacturing overhead 100Unit cost $360 Assume that Avocado has sufficient capacity to fill the order. What special order price should Avocado charge to make a $20,000 incremental profit?
A. $270
B. $360
C. $260
D. $400
Answer: A
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The customer could be right when he/she:
A. is asking for terms that are harmful for the seller. B. is dishonest. C. tempts the salesperson to conduct an unethical task. D. believes that he is right in spite of being wrong. E. asks the salesperson to set an illegal price.
Selected balances from a company's financial statements are shown below. Calculate the following ratios for Year 2:(a) accounts receivable turnover(b) inventory turnover(c) days' sales uncollected(d) days' sales in inventory(d) profit margin.(e) return on total assets.?Dec. 31,Dec. 31,For ?Year 2Year 1Year 2Accounts receivable$ 27,000$ 24,000?Merchandise inventory25,00020,000?Total assets296,000244,000?Accounts payable26,00032,000?Salaries payable3,0004,400?Sales (all on credit)??$312,000Cost of goods sold??165,600Salaries expense??48,000Other expenses??75,000Net income??24,000
What will be an ideal response?
Ann is considering the purchase of a life insurance policy with these characteristics:
flexible premium payments, the insurance and savings components are separate, the interest rate credited to the cash value is tied to a changing market interest rate but a minimum interest rate is guaranteed, and a monthly administrative fee is charged. Ann is considering buying A) whole life insurance. B) variable life insurance. C) universal life insurance. D) current assumption whole life.
Multiple Choice: Problems ? A good bit of relatively simple algebra is involved in these problems, and although the calculations are simple, it will take students some time to set up the problems and do the arithmetic. We allow for this when assigning problems for a timed test. Also, note that students must know the definitions of a number of ratios to answer the questions. We provide our students with a formula sheet on exams, using the relevant sections of Appendix C at the the end of the text. Otherwise, they spend too much time trying to memorize things rather than trying to understand the issues. The difficulty of the problems depends on (1) whether or not students are provided with a formula sheet and (2) the amount of time they have to work the problems. Our difficulty
assessments assume that they have a formula sheet and a "reasonable" amount of time for the test. Note that a few of the problems are trivially easy if students have formula sheets. To work some of the problems, students must transpose equations and solve for items that are normally inputs. For example, the equation for the profit margin is given as Profit margin = Net income/Sales. We might have a problem where sales and the profit margin are given and then require students to find the firm's net income. We explain to our students in class before the exam that they will have to transpose terms in the formulas to work some problems. Problems 84 through 114 are all stand-alone problems with individualized data. Problems 115 through 133 are all based on a common set of financial statements, and they require students to calculate ratios and find items like EPS, TIE, and the like using this data set. The financial statements can be changed algorithmically, and this changes the calculated ratios and other items. Ryngard Corp's sales last year were $43,000, and its total assets were $16,000. What was its total assets turnover ratio (TATO)? A. 2.50 B. 2.28 C. 2.71 D. 3.06 E. 2.69