Salespeople are concerned with profitability in bottom-line terms, whereas accountants and financial staff are responsible for achieving a healthy "top line" on the profit and loss statement.
Answer the following statement true (T) or false (F)
False
Although accountants and financial staff are concerned with profitability in bottom- line terms, salespeople are constantly reminded of their responsibility to achieve a healthy "top line" on the profit and loss statement. Salespeople are increasingly responsible for improving profitability, not only by producing sales revenues but also by improving the productivity of their actions. See 1-4: Contributions of Personal Selling
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Clinton Inc is considering the purchase of a new equipment costing $200,000. The equipment is expected to reduce annual operating costs by $70,000 and will be depreciated using the straight-line method (with no half-year convention) over five years with no salvage value at the end of its useful life. Assuming a 40 percent income tax rate, the equipment's payback period is:
A) 2.44 years. B) 2.86 years. C) 3.45 years. D) 4.76 years.
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