The primary buying objective for business firms is usually to
A. increase profits through reducing costs and decreasing revenues.
B. maintain profits through reducing costs and increasing revenues.
C. increase profits through reducing costs or increasing revenues.
D. reduce profits through reducing costs and reducing revenues.
E. increase profits through increasing costs and increasing revenues.
Answer: C
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Management insists that a purchase be made only if the break-even point for the purchase is at least 500 units. If the fixed cost is $600 and variable cost per unit is $3, what is the selling price that should be set to exactly achieve this break-even point?
a. $4.20 b. $5.00 c. $6.00 d. Cannot be determined from the information given
Nylan Tiles is considering an investment in new equipment costing $858,000
The equipment will be depreciated on a straight-line basis over a five-year life and is expected to have a residual value of $62,000. The equipment is expected to generate net cash inflows of $1,002,000 in total during the five-year life. What is the accounting rate of return associated with the equipment investment? (Round your answer to two decimal places.) A) 12.36% B) 8.96% C) 45.23% D) 9.34%
Explain the steps necessary to take advantage of an arbitrage opportunity, which may exist between the dollar and yen, when a future yen payment is required
What will be an ideal response?
Using ratio estimation, an auditor has taken a sample of 150 from a population's 50,000 items; that population has a book value of $250,000. She found that in her sample the average audited value was $4.50, while the average book value was $5.20. What is the estimated total audited value of the population?
A. $216,346. B. $215,000. C. $225,000. D. $250,000.